Federal Reserve Withdraws 95% of Its Anti-Crypto Guidance, But There’s Still One Major Obstacle Left

The Federal Reserve has rolled back most of its anti-crypto guidance restricting U.S. banks from engaging in crypto-related activities. 

The Fed disclosed in an April 24 statement that it had rescinded its 2022 and 2023 supervisory letters, which restricted banks’ support for crypto assets. 

Fed Rescinds Its 2022 and 2023 Anti-Crypto Guidance 

For context, the Fed 2022 supervisory letter required state member banks to notify the Fed before engaging in crypto activities, including trading and custody. On the other hand, the 2023 letter established a ‘supervisory non-objection’ process for banks’ engagement in dollar-pegged stablecoins. 

In its latest press release, the Fed noted that it has rescinded both the 2022 and 2023 supervisory letters. As a result, U.S. banks no longer need to send special notices to the Fed before engaging in crypto activities. Hence, the Fed will only monitor banks’ crypto activity as part of its routine supervisory process. 

Further, the Fed withdrew two statements it made in 2023 in collaboration with the OCC and FDIC, in which the agencies jointly clarified how banks should manage crypto activity and exposure. 

Following this move, the Federal Reserve Board will coordinate with the OCC and FDIC to ascertain whether it is appropriate to establish additional guidance to drive innovation in crypto. 

Strategy Chairman Reacts 

The Fed’s move to rescind most of its anti-crypto guidance has triggered positive reactions among crypto stakeholders. In a statement, Michael Saylor, the executive chairman of Strategy, highlighted the significance of the Fed’s latest policy. According to him, the Fed’s withdrawal of its anti-crypto guidance now gives U.S. banks the freedom to support Bitcoin. 

Banks are now free to begin supporting Bitcoin. https://t.co/mw7KjqJbQr

— Michael Saylor (@saylor) April 24, 2025

One Major Obstacle Remains

Meanwhile, Eleanor Terrett, the host of Crypto in America, emphasized that while the Fed has rolled back 95% of its anti-crypto guidance, one major obstacle remains. 

Terrett called the public’s attention to a statement from Caitlin Long, the founder and CEO of Custodia Bank, which highlighted the Fed’s refusal to rescind a major anti-crypto guidance. 

According to Long, the Fed withdrew all other anti-crypto guidance it issued without a board vote. However, it failed to withdraw its anti-crypto guidance issued on January 27, 2023, which was fully approved by the board in a 7 – 0 vote. 

It bears mentioning that the guidance relates to the Fed’s concerns about banks issuing tokens on a blockchain. The Fed suggested that the practice was inconsistent with safe and sound banking practices. 

With the guidance still in effect, Long suggested that Fed-regulated banks are disadvantaged compared to financial institutions regulated by the OCC and FDIC when engaging in crypto activity. 

However, she expects the upcoming stablecoin bill to resolve the Fed’s anti-crypto guidance. Notably, Long asserted that the Fed has not complied with Donald Trump’s crypto executive order, which aims to drive the industry’s growth.