On April 25, the Federal Reserve announced the withdrawal of two regulatory guidelines related to activities involving digital assets and updated the relevant business expectations standards; this move means that Banks do not need prior approval from regulatory Institutions before engaging in digital asset and stablecoin activities; this reflects the latest initiative of the Trump administration to adopt a more friendly stance towards Cryptos, leading to a rise in Bitcoin.
On April 25, the Financial Association reported (Editor: Zhou Ziyi) that on Thursday (April 25), the Federal Reserve announced the withdrawal of several documents urging Banks to be cautious when venturing into Cryptos and related activities, and simultaneously updated the relevant business expectations standards. This news brought a Bullish signal to the crypto space.
The Federal Reserve stated that it is withdrawing the regulatory letter issued in 2022, which stipulated that state member Banks should obtain prior approval from regulatory Institutions before engaging in digital asset and stablecoin activities; simultaneously, the guidance document regarding the 'no objections' procedure for state member Banks participating in Dollar Token activities issued by the Federal Reserve in 2023 was also revoked.
According to previous guidance documents, regulatory Institutions warned Banks to be cautious about volatility, legal uncertainty, and liquidity risks when considering whether to provide crypto-related services or accept crypto companies as clients. After the withdrawal, the Federal Reserve will no longer require Banks to report business activities but will instead detect relevant activities through conventional regulatory procedures.
In addition, the Federal Reserve, along with the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC), jointly decided to withdraw two policy statements regarding Banks' digital asset business and risk exposure issued by federal Banking regulatory Institutions in 2023, while urging Banks to remain vigilant about risks related to Cryptos.
In the statement announcing these changes, the Federal Reserve also indicated that regulatory Institutions will subsequently investigate whether the new guidelines 'support innovations, including activities related to digital assets.'
The Federal Reserve's action to cancel the guidance documents marks the latest initiative of the Trump administration to adopt a more friendly stance towards Cryptos.
It is worth mentioning that in March of this year, the Office of the Comptroller of the Currency was the first to take action to make it easier for Banks to engage in crypto activities among US Banking regulatory Institutions, while also revoking the previous government's guidance urging Banks to remain cautious in the crypto field.
As of Friday (April 25), Bitcoin has risen slightly, priced at 93,576 dollars.
Editor/Somer
