Federal Reserve Lifts Crypto Guidance for Banks, Encouraging Innovation in US Markets

The Federal Reserve has reversed its 2022 and 2023 crypto guidance for banks, relaxing regulatory restrictions on their involvement in the cryptocurrency sector. This decision, announced April 24, 2025, promotes innovation by aligning U.S. policy with industry interests. Specifically, the Fed rescinded its requirement that banks notify regulators before engaging in crypto activities, which had been a significant factor hindering bank participation in the growing field. This action is part of a broader effort to ease regulatory burdens and foster greater financial integration with blockchain technologies and the cryptocurrency market.