The Federal Reserve has joined its fellow American banking regulators to eliminate its cryptographic guide from previous years, including notices that banks should obtain prepress them before getting involved in cryptographic activity.
Now, the three agencies, including the Office of the Comptroller of La Moneda and the Federal Deposit Insurance Corp., have joined to reverse those previous policies, leaving cryptographic matters in the banks in the hands of their managers and compliance executives. In the absence of guidance, the banking industry expects new laws of Congress to define how the digital asset industry in the United States should operate
“These actions ensure that Board’s expectations remain aligned with evolving risks and support greater innovation in the banking system,” said the Fed in Thursday’s statement announcing the change.
The banking supervision of its State member banks is one of the multiple roles made by the Fed, which is better known for its monetary policy work. The agency’s move on Thursday will specifically eliminate four cryptographic guide pieces in which the Board signed in 2022 and 2023, highlighting the risks for the banks raised by the sector.
Fed officials “instead will monitor the crypto-active activities of banks through the normal supervision process.”
Read more: Reverse FDIC to the US cryptographic bank policy
