#HighlightPosts  Fed withdraws crypto restrictions: Old statements rescinded.

The Fed has withdrawn its previous statements urging banks to be careful with cryptocurrencies. With the new decision, crypto activities will now be monitored as part of its normal oversight processes.

The Fed announced that it has withdrawn official documents that had previously advised banks to be careful with cryptocurrency-related activities.

The US central bank had asked banks to provide notification before trading cryptocurrencies in 2022. Under the new policy, the Fed will no longer expect notification from banks in this regard, but will instead monitor cryptocurrency activities as part of its normal oversight processes.

The Fed also announced that it has withdrawn the statement issued in 2023 regarding banks’ participation in stablecoin activities.

Finally, the bank has decided to withdraw two more statements issued jointly by federal bank regulators and the Federal Deposit Insurance Corporation in 2023, warning banks to be careful about the risks associated with cryptocurrencies.

Regulators have previously reminded banks to be particularly careful about market volatility, legal uncertainty, and liquidity risks when considering whether to offer crypto services or accept crypto companies as clients.

The revocation of these statements is seen as a reflection of the Trump administration’s positive policies on crypto.

In March, the became the first US regulator to facilitate banks’ participation in crypto activities, and took a similar step by removing a statement adopted by the previous administration that called on banks to be cautious in this area.

On the other hand, Fed Chair Jerome Powell has also recently given positive messages about cryptocurrencies. In his latest speech, Powell said, “The climate is changing on crypto, it is becoming mainstream,” and in February, he said that many crypto activities could very well be done by banks.