- U.S. banking regulators have reversed several rules and statements that previously limited financial institutions from handling cryptocurrency activities.
- The Office of the Comptroller of the Currency (OCC), Federal Deposit Insurance Corporation (FDIC), and Federal Reserve have each withdrawn earlier guidance restricting crypto engagement.
- Regulators indicated that while crypto activities are now more accessible to banks, existing risk and compliance standards still apply and further guidance is expected.
The Biden administration has signaled support for U.S. leadership in the cryptocurrency sector, as discussed in a recent webcast, Bank Regulatory Agency Update Under DOGE: What Every Financial Institution Needs to Know. Key federal regulators, including the OCC, FDIC, and Federal Reserve, have recently reversed restrictions that previously limited how banks and savings institutions could participate in digital asset activities.
One early step the administration highlighted was the removal of SEC Staff Accounting Bulletin No. 121 (SAB 121). This bulletin had required companies to treat cryptocurrencies and other digital assets as both assets and liabilities on their balance sheets. According to the original webcast, many in the industry believe this rule made it nearly impossible for traditional banks to safely hold crypto and comply with regulatory obligations. With SAB 121 rescinded, banks can more easily safeguard digital assets, though they still must follow rules set by their primary banking regulators.
On March 7, 2025, the OCC issued Interpretive Letter 1183, withdrawing several interpretive letters from 2020 and 2021. The withdrawal allows national banks and federal savings associations to still take part in crypto custody, stablecoin operations, and use of distributed ledger networks. The OCC also removed itself from earlier joint statements with other regulators about crypto that were issued in 2023.
The FDIC took similar steps on March 28, 2025, by pulling back its 2022 guidance. This guidance had required FDIC-supervised banks to notify the agency before engaging in digital asset activities. By rescinding this rule, banks can now explore crypto-related activities without sending advance notice to the FDIC. Like the OCC, the FDIC withdrew from 2023 joint regulator statements on crypto.
On April 24, 2025, the Federal Reserve withdrew its advance notification process for state member banks wishing to enter the crypto market. The Fed also removed a rule requiring banks to get supervisory approval for dollar token programs, and—alongside the OCC and FDIC—withdrew its support for earlier joint warnings about digital asset risks.
In 2023, the three agencies had issued joint statements following the collapse of the FTX exchange, highlighting the risks banks could face if they offered crypto services. These statements, combined with previous guidance and SAB 121, discouraged most traditional banks from participating in crypto activities.
The agencies now emphasize that banks must still consider market, liquidity, Cybersecurity, operational, consumer, and anti-money laundering risks with any crypto services, according to the webcast source. Regulators also stated that they will work together to create updated interagency guidance, aiming to give traditional institutions clearer rules for offering digital asset services in the future.
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