US Fed Announces Relaxation of Bank Regulation on Cryptocurrency and Stablecoin Activities

On the 24th, the Federal Reserve Board (FRB) announced the relaxation of regulations on banks' activities related to crypto assets (virtual currencies) and US dollar-denominated stable coins.

First, the FRB rescinded the supervisory policy issued in 2022 for state member banks (state-chartered commercial banks that are members of the Federal Reserve System), which required them to notify the FRB in advance of any planned or ongoing cryptocurrency-related activities.

As a result, banks will no longer be required to make such notifications, and cryptocurrency activities will be monitored through the normal supervisory process.

In addition, the FRB has rescinded the supervisory policy for state member banks to engage in US dollar-denominated stable coins...