The federal reserve raises the encryption restrictions of banks in the historical transformation

The Federal Reserve announced on Thursday the withdrawal of guidance for banks related to their activities in the encryption origins and activities, with changes to their expectations in these links.

According to a statement, this step aims to ensure that its supervisory approach remains compatible with advanced risks and support for innovation within the banking system.

Politics changes

As part of this transformation, the council is cancellation Her supervisory message 2022. The guidance of the state’s member banks has requested a prior notice of any planning or continuous encryption assets. Under the new rules, banks will not be expected to provide these connections.

The Federal Reserve also cancels a similar order from 2023 regarding the non -dispensing process of member banks that participate in the activities of Stablecoin. This eliminates the requirements of financial institutions to obtain prior approval before participating in such activities.

Supervision will now decrease under record organizational supervision, without the need for a prior transition

In addition, the Federal Reserve, along with the Federal Deposit Insurance Corporation (FDIC), withdraws from two joint statements issued in 2023 by the regulatory agencies of the Federal Bank. These communications have clarified the organizers’ views of the risks associated with exposure to encryption and provided initial guidelines for banks operating in those markets.

After the amendments, the Federal Reserve will now work with relevant agencies to assess whether additional or updated guidelines are needed to support innovation in encryption activities.

This strategy reversal comes just weeks after the Currency Observer Office (OCC) took a similar step. Federal banking as well Rolled The restrictions that have taken place from the participation of financial institutions with the assets of encryption.

Before presenting these policies, some industry personalities claimed that they and their business were rejected from traditional banking services only because of their association with the digital asset industry. These allegations were the basis of what became known as the “CokkePoint 2.0”.

Positive industry developments

On Thursday’s decision is the latest in a series of favorable results for the encryption industry within the framework of the Trump administration. Earlier this month, the US Department of Justice (Doj) announced that it will not follow criminal charges against encryption exchange, developers or users participating in organizational violations.

This development followed the solution of the national cryptocurrency enforcement team (NCET), which is the unit of the Ministry of Justice specialized that had previously dealt with criminal cases related to encryption.

In February, the Securities and Stock Exchange Committee (SEC) reduced its management size responsible for prosecuting the encryption. The CFTC Futures Trading Committee also delivered it to the digital assets enforcement teams in January, leaving only two groups to deal with related cases.