Fed withdraws banking guidance related to crypto-asset activities

Odaily Planet Daily News The Federal Reserve announced the withdrawal of regulatory guidance on bank crypto assets and US dollar token business, and simultaneously updated the relevant business expectation standards. This move is intended to ensure that regulatory requirements keep pace with risk evolution and further support innovation in the banking system. The announcement shows that the Federal Reserve officially abolished the regulatory letter issued in 2022, which previously required state member banks to make prior filings for proposed or existing crypto asset businesses. After the revocation, the Federal Reserve will no longer require banks to fulfill their filing obligations and instead monitor related activities through regular regulatory procedures. Also abolished is the 2023 guidance document on the "regulatory no objection" procedure for state member banks to participate in the US dollar token business. In addition, the Federal Reserve and the Federal Deposit Insurance Corporation jointly decided to withdraw from two policy statements on bank crypto asset business and risk exposure jointly issued by federal bank regulators in 2023. The Office of the Comptroller of the Currency has previously withdrawn from the statement. The Federal Reserve said that in the future, it will work with other regulators to assess whether a new guidance framework is needed to support innovation (including crypto asset business). (Jinshi)