Fed Throws Banks a Bone: Crypto Rules Are Basically Gone

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Well, well, well. On Thursday, the Federal Reserve decided to show a little mercy to the banks by lifting restrictions related to crypto assets and stablecoins. It seems the Fed finally realized the world isn’t exactly waiting for them to figure out the future of digital money. 🙄

According to their statement, this grand gesture is all about keeping up with the times and “supporting innovation”—because we all know that innovation thrives when you stop looking over your shoulder at Big Brother. 🔍

Policy Changes (Or, How to Make Rules Disappear)

In a rare moment of clarity, the Fed has rescinded its 2022 supervisory letter, which once required state member banks to give advance notice before diving into crypto waters. No more. Banks can now do whatever they want without a heads-up. How nice for them. 🙃

Oh, and don’t forget the other delightful change: the Fed also nixed the 2023 non-objection process for stablecoin activities. Now, banks can get in on the stablecoin action without having to beg for permission first. Can you hear the collective sigh of relief from bankers? 💸

Now, oversight will fall under the usual, “we’ll keep an eye on you” regulatory supervision. No more need for pre-clearance. It’s like the Fed is giving them a wink and a nod. How comforting. 😏

But wait, there’s more! The Fed, in cahoots with the Federal Deposit Insurance Corporation (FDIC), decided to pull two joint statements from 2023 that had previously warned about the “dangers” of crypto. Because who needs warnings when you’re already halfway to making a mess? 🤷‍♂️

In an unexpected plot twist, the Fed, along with its partners, might also offer updated guidance soon. Nothing like a little unpredictability to spice things up in the world of finance. 🍿

And just in case you missed it, this is happening just weeks after the Office of the Comptroller of the Currency (OCC) made a similar move to ease up on crypto regulations. It’s like the floodgates are finally open, and we’re all invited to the party. 🎉

It turns out that before all this policy drama, some crypto advocates were whining about being denied traditional banking services because of their involvement with digital assets. They even coined a catchy name for it—“Operation Chokepoint 2.0.” Well, problem solved now. 🙌

Positive Industry Developments (For Crypto Lovers)

This delightful reversal comes right on the heels of some other wins for the crypto industry. Under the Trump administration (yes, you read that right), the U.S. Department of Justice (DOJ) decided to stop pursuing criminal charges against crypto exchanges, developers, or users. Party time for them! 🍾

And let’s not forget the disbanding of the National Cryptocurrency Enforcement Team (NCET), which was responsible for keeping crypto criminals in check. Clearly, we’re shifting to “chill vibes only.” 🕶️

In a final flourish, the Securities and Exchange Commission (SEC) trimmed down its crypto prosecution team, and the Commodity Futures Trading Commission (CFTC) followed suit by downsizing their digital asset enforcement teams. Fewer watchdogs? More fun for everyone! 🐶

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2025-04-26 01:04