On April 24, the FDIC and the Fed announced they have retracted two joint statements concerning banking organizations’ activities related to crypto-assets. According to the agencies, this move aims to clarify that banking organizations can engage in permissible crypto-asset activities and offer products and services to individuals and firms involved in crypto-asset activities, so long as they adhere to safety, soundness, and applicable laws and regulations. The withdrawn statements, originally issued on January 3, 2023 (covered here), and February 23, 2023 (covered here), had addressed risks, particularly liquidity concerns stemming from vulnerabilities in the crypto-asset market. The Fed is also withdrawing its 2022 supervisory letter that required state member banks to notify them of crypto-asset activities (covered here), opting to monitor these activities through the regular supervisory process instead. Additionally, the Fed is rescinding its 2023 letter concerning the supervisory nonobjection process for banks involved in dollar token activities (covered here). The agencies, in collaboration with the OCC, are considering issuing further guidance on banking organizations’ crypto-asset activities in the upcoming weeks and months.
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