Fed Lifts Crypto Notification Rule for US Banks, Simplifying Digital Asset Activities

The Federal Reserve has significantly eased its regulatory approach to cryptocurrencies and stablecoins by withdrawing its prior notification requirement for banks engaging in these activities. This move signifies a shift towards broader integration of digital assets within the U.S. financial system.   Instead of demanding pre-approval, the Fed will now monitor these activities through standard supervisory channels, similar to other banking operations. This change removes bureaucratic hurdles and promotes greater flexibility for banks looking to offer crypto services while ensuring compliance with existing standards.