U.S. banking regulators announced on Thursday they were pulling back several documents that urge banks to show caution when dabbling in cryptocurrency and related activities.
The Federal Reserve said it was withdrawing a pair of supervisory letters stipulating that banks should seek advance approval from regulators before engaging in crypto-asset and stablecoin activities.
In addition, the Fed joined the Federal Deposit Insurance Corporation and Office of the Comptroller of the Currency in withdrawing a pair of 2023 statements urging banks to be vigilant around crypto-related risks.
Under the prior guidance, regulators warned banks to be wary of volatility, legal uncertainty and liquidity risks when considering whether to provide crypto-related services or take on crypto companies as clients.
Scrapping that guidance marks the latest move by the Trump administration to strike a more crypto-friendly stance. In its statement announcing the changes, the Fed said regulators would be looking into whether new guidance to “support innovation, including crypto-asset activities, is appropriate.”
In March, the OCC was the first US regulator to move to make it easier for banks to engage in crypto activities, similarly moving to scrap guidance adopted under the previous administration urging banks to be cautious in the space.
Source : Reuters
Carbon pricing is widely regarded as an effective tool to reduce greenhouse gas emissions, yet…
Most policy debates on gender inequality focus on formal rules such as pay transparency, quotas,…
Business cycles in advanced economies are increasingly driven by global rather than domestic shocks. This…
How did Brexit impact the UK labour market? This column uses synthetic differences-in-differences to estimate…
Comparable international survey data on artificial intelligence adoption by firms is still lacking. This column…
Public debt is at or near record highs in many economies. This column argues that…