US Banks No Longer Need Fed Approval to Enter Crypto Space
- Banks no longer need Fed approval to offer crypto services or stablecoin activities.
- Regulatory rollback signals the end of “Operation Choke Point 2.0” and the rise of pro-crypto US banking policy.
The US Federal Reserve has officially dropped its long-standing guidance that required banks to jump through hoops before offering crypto-related services. Gone are the days when state-chartered banks had to alert the Fed in advance or wait for written approvals to deal in stablecoins or digital assets.
In a decisive statement issued on April 24, the Fed declared that its 2022 and 2023 supervisory letters—once seen as major deterrents to institutional crypto adoption—are now history. Instead, banks will now be supervised through standard channels, just like any other traditional banking activity. Banks are free to explore blockchain-backed products without regulatory red tape.
The Fed noted:
“This shift ensures our expectations evolve alongside the risks and opens space for innovation in the banking system.” All Eyes on Innovation as Regulators Step Back
This move isn’t happening in isolation. The Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) with the Fed will join force to lead the new crypto legislation.
Banks will no longer be judged for “reputation risk” when working with crypto firms. There will be no more caution letters, no more blanket skepticism.
The timing is key. This rollback follows growing criticism that US regulators were stifling financial innovation. Industry leaders often pointed fingers at what they dubbed “Operation Choke Point 2.0”—a Biden-era trend of silently squeezing crypto firms out of the banking system. That era is now officially over.
With Trump back in office, financial agencies are clearly syncing up to promote a friendlier approach to crypto. Earlier this year, the Securities and Exchange Commission (SEC) began withdrawing lawsuits against companies like Ripple, Coinbase, and Kraken.
SEC Chair Paul Atkins has openly committed to prioritizing Bitcoin and supporting fair oversight, not blanket enforcement.
What This Means for Banks and the Crypto Market
The regulatory rollback doesn’t mean a free-for-all. Banks still need to manage risk, especially around cybersecurity, consumer protection, and liquidity. But now, they’ll do so without having to tiptoe around overly cautious rules.
The message from Washington is clear: responsible crypto innovation is not only welcome—it’s encouraged. The Fed and its partner agencies say they’ll monitor developments and only issue new guidance if necessary.
For now, the door is wide open for US banks to launch crypto custody services, explore stablecoin settlements, and partner with blockchain firms without the burden of outdated approvals.
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US Banks No Longer Need Fed Approval to Enter Crypto Space
- Banks no longer need Fed approval to offer crypto services or stablecoin activities.
- Regulatory rollback signals the end of “Operation Choke Point 2.0” and the rise of pro-crypto US banking policy.
The US Federal Reserve has officially dropped its long-standing guidance that required banks to jump through hoops before offering crypto-related services. Gone are the days when state-chartered banks had to alert the Fed in advance or wait for written approvals to deal in stablecoins or digital assets.
In a decisive statement issued on April 24, the Fed declared that its 2022 and 2023 supervisory letters—once seen as major deterrents to institutional crypto adoption—are now history. Instead, banks will now be supervised through standard channels, just like any other traditional banking activity. Banks are free to explore blockchain-backed products without regulatory red tape.
The Fed noted:
“This shift ensures our expectations evolve alongside the risks and opens space for innovation in the banking system.” All Eyes on Innovation as Regulators Step Back
This move isn’t happening in isolation. The Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) with the Fed will join force to lead the new crypto legislation.
Banks will no longer be judged for “reputation risk” when working with crypto firms. There will be no more caution letters, no more blanket skepticism.
The timing is key. This rollback follows growing criticism that US regulators were stifling financial innovation. Industry leaders often pointed fingers at what they dubbed “Operation Choke Point 2.0”—a Biden-era trend of silently squeezing crypto firms out of the banking system. That era is now officially over.
With Trump back in office, financial agencies are clearly syncing up to promote a friendlier approach to crypto. Earlier this year, the Securities and Exchange Commission (SEC) began withdrawing lawsuits against companies like Ripple, Coinbase, and Kraken.
SEC Chair Paul Atkins has openly committed to prioritizing Bitcoin and supporting fair oversight, not blanket enforcement.
What This Means for Banks and the Crypto Market
The regulatory rollback doesn’t mean a free-for-all. Banks still need to manage risk, especially around cybersecurity, consumer protection, and liquidity. But now, they’ll do so without having to tiptoe around overly cautious rules.
The message from Washington is clear: responsible crypto innovation is not only welcome—it’s encouraged. The Fed and its partner agencies say they’ll monitor developments and only issue new guidance if necessary.
For now, the door is wide open for US banks to launch crypto custody services, explore stablecoin settlements, and partner with blockchain firms without the burden of outdated approvals.
Highlighted Crypto News for Today
CryptoQuant CEO Needs Bitcoin To Break This Price Level to Turn Bullish Again
Read More
Federal Reserve Dismantles Crypto Barriers—Scraps Biden-Era Restrictions