The Federal Reserve Board has announced the withdrawal of guidance for banks concerning their involvement in crypto-asset and dollar token-related activities. This decision comes as part of an initiative to align expectations with evolving risks and further support innovation within the banking system.
The Board is retracting its 2022 supervisory letter, which required state member banks to give advance notice of their planned or ongoing crypto-asset activities. Consequently, banks will no longer need to provide such notifications, as these activities will now be monitored through the regular supervisory process.
In addition, the Board is rescinding its 2023 supervisory letter that detailed the supervisory nonobjection process for state member banks engaging in dollar token activities.
Furthermore, the Board, in collaboration with the Federal Deposit Insurance Corporation (FDIC), is joining the Office of the Comptroller of the Currency in withdrawing two 2023 statements issued by federal bank regulatory agencies regarding banks' crypto-asset activities and exposures. The Board intends to work with these agencies to determine whether additional guidance to support innovation, including crypto-asset activities, is appropriate.
These developments include the withdrawal of the Joint Statement on Crypto-Asset Risks to Banking Organizations and the Joint Statement on Liquidity Risks to Banking Organizations Resulting from Crypto-Asset Market Vulnerabilities. The supervisory letter SR 22-6 / CA 22-6 concerning the engagement in crypto-asset-related activities by Federal Reserve-supervised banking organizations has also been withdrawn.