The Federal Reserve and other American regulators have removed their warnings and guidance related to cryptocurrencies for U.S. banks.
Previously, the U.S. Federal Reserve asked America’s commercial banks to get pre-approvals before entering into crypto activities.
Other American financial regulators, such as the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corp. (FDIC) provided similar guidance.
But now, all three regulatory agencies have reversed their previous policies, leaving cryptocurrency matters up to the discretion of individual banks and their executives.
The reversal comes as the administration of U.S. President Donald Trump moves to deregulate the crypto sector and as the banking industry awaits new crypto laws from Congress.
Banking supervision is one of the multiple roles performed by the U.S. Federal Reserve, America’s central bank.
The Fed said that it is removing four pieces of crypto guidance that its board of governors signed in 2022 and 2023, highlighting risks to banks posed by digital coins and tokens.
Going forward, the Federal Reserve said that it “will monitor banks' crypto-asset activities through the normal supervisory process.”
Bitcoin, the largest cryptocurrency by market capitalization, is currently trading at $94,600 U.S., having risen 1% so far this year.
