Quick Breakdown
- Federal Reserve removes 2023 guidance limiting banks’ crypto activities.
- Move supports innovation but requires banks to address custody and volatility risks.
- Decision aligns with OCC and FDIC shifts, boosting traditional finance-crypto integration.
The Federal Reserve announced the withdrawal of its 2023 guidance on crypto-asset activities for banks, marking a pivotal regulatory shift. Issued on December 17, 2025, the decision removes prior restrictions that cautioned banks against engaging in digital asset activities due to perceived risks. Banks can now offer crypto-related services, such as custody and trading, provided they demonstrate robust risk management.
@federalreserve withdraws 2023 policy statement and issues new policy statement regarding the treatment of certain Board-supervised banks that facilitates responsible innovation: https://t.co/5s1I9LO9EF
— Federal Reserve (@federalreserve) December 17, 2025
This change follows similar actions by the Office of the Comptroller of the Currency (OCC) and Federal Deposit Insurance Corporation (FDIC), which rescinded restrictive letters earlier in 2025. The Fed emphasized that supervised institutions must continue to comply with existing safety and soundness standards, including capital adequacy and liquidity rules. No new specific crypto guidelines replace the withdrawn document, leaving banks to self-assess under general banking laws.
Regulatory pivot opens doors for banks
The original 2023 guidance, known as SR 22-6, warned banks against involvement in crypto amid market turmoil, such as the TerraUSD collapse. It highlighted risks in custody, stablecoins, and blockchain payments. Withdrawal reflects maturing crypto markets and President Trump’s pro-innovation stance since his January 2025 inauguration. Industry groups like the Bank Policy Institute welcomed the move, noting it ends “unnecessary barriers” to blockchain adoption.
Banks such as SoFi have already capitalized on this environment. SoFi launched crypto trading as the first U.S. national bank to do so, trading BTC and ETH after the OCC eased rules. CEO Anthony Noto called crypto akin to the early internet, with 60% of members interested. Plans for a SoFi USD stablecoin and blockchain lending underscore practical integration.
Risks persist amid innovation push
Despite the green light, the Fed stressed ongoing supervision. Banks must notify regulators before major crypto activities and prove operational resilience against hacks and volatility. This balances innovation with stability, as seen in Kraken’s EU expansion, which uses BTC collateral for futures under MiCA rules.
If you would like to read more articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
