Federal Reserve Withdraws Crypto-Specific Guidance for Banks, Reshaping Oversight
24.04.2025 23:21
On April 24, 2025, the US Federal Reserve announced it is withdrawing its crypto-asset and stablecoin guidance for banks. The change rescinds the 2022 supervisory letter, which required state member banks to provide advance notification of planned or ongoing crypto activities, as well as the 2023 letter governing stablecoin-related practices. Moving forward, all crypto-related activities will be monitored under the Fed’s standard supervisory process. This marks a significant regulatory shift, potentially altering how banks interact with crypto assets, as the specific rules designed to preemptively manage crypto risks are eliminated. Additional details are expected as the story develops.
BTC could see a moderated response as the removal of crypto-specific reporting might lower compliance costs for banks, possibly fostering increased institutional involvement. However, since banks will still operate under the standard regulatory framework, the immediate impact is likely to be subdued. In the long term, clearer, less burdensome guidelines may gradually support price strength if institutional adoption rises.
ETH may experience similar effects to BTC, with the easing of crypto-specific oversight potentially reducing operational frictions for banks and encouraging a broader participation in the ecosystem. The initial market reaction is expected to be calm due to the continuation of regular supervisory processes. Over time, improved regulatory clarity might boost investor confidence and support steady price appreciation.
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