US Federal Reserve Board reverses crypto-unfavorable banking guidelines

The U.S. Federal Reserve has officially rescinded guidelines that required banks to notify them of their activities related to cryptocurrencies and stablecoins.
The Federal Reserve's first major pro-cryptocurrency measure since the Trump Administration took office is the Cryptocurrency and Stablecoin Related Bank Pre-Action Notice.
The Federal Reserve Board has announced that it will withdraw the guidelines, which will be a major turning point in expanding crypto participation among banks in the United States.
"We are repealing SR 22-6, which required state banks to provide advance notice before planning or conducting cryptocurrency-related activities," the agency said.
As a result, banks' crypto-asset related activities will now be governed by the Fed's general supervisory procedures.
In addition, the Fed also withdrew its stablecoin-related guidelines announced in 2023.
At the time, the guidelines warned that large-scale adoption of stablecoins could lead to the collapse of the payment system and financial instability, and highlighted the risks to safety, soundness, and consumer protection.
The Fed also retracted two joint statements it had made in 2023 with the FDIC and the Office of the Commissioner for Financial Services (OCC) warning banks about doing business with cryptocurrency companies.
"Cryptocurrency companies are providing inaccurate or misleading information, which could cause serious harm to consumers and institutional investors," the statement said.
This move is seen as the first time that the Fed has indicated deregulation under the Trump administration and taken a more lenient stance toward the cryptocurrency industry.
The administration has recently been making moves to reposition the United States as a cryptocurrency-friendly nation. On January 23, the U.S. Securities and Exchange Commission (SEC) also lifted a decree banning the holding of cryptocurrencies.
The U.S. Department of Justice recently rolled back a controversial provision that required banks and financial institutions to account for such assets as liabilities, removing one regulatory barrier to crypto banking services.