U.S. Regulators Shift Stance on Crypto Guidelines

U.S. banking regulators, including the Federal Reserve, are retracting documents urging caution on cryptocurrency activities. The Fed has removed supervisory letters requiring banks to seek approval before engaging in crypto activities. This includes withdrawing recent statements, showcasing a shift towards a more crypto-friendly policy.

In a significant policy shift, U.S. banking regulators announced on Thursday the retraction of multiple documents that previously urged caution in the realm of cryptocurrency. The move marks a notable change in attitude towards digital currencies.

The Federal Reserve withdrew a pair of supervisory letters that had stipulated banks must obtain advance approval from regulators before engaging in activities involving crypto-assets and stablecoins.

This development follows the Federal Reserve, in cooperation with the Federal Deposit Insurance Corporation and Office of the Comptroller of the Currency, withdrawing 2023 statements that emphasized the importance of banks remaining cautious about crypto-related risks. These steps highlight the Trump administration's evolving and more welcoming approach to cryptocurrency.

(With inputs from agencies.)