The Federal Reserve withdraws the crypto ban, opening new opportunities for banks to participate in digital assets

2025-12-18 01:30:12

【Blockchain Rhythm】Breaking News: The Federal Reserve announced a shift on December 18th—retracting the strict restrictions on state member banks’ involvement in cryptocurrencies that were set in 2023. The previous document had set a very high threshold, essentially signaling “strong opposition.” Now, things are different. The Federal Reserve has replaced it with a more flexible new policy version for 2025.

What exactly has changed? The interesting part is—state member banks with FDIC deposit insurance still follow the old regulatory rules, and the restrictions under Section 24 of the Federal Deposit Insurance Act remain strict; but banks without deposit insurance now have the opportunity to apply case-by-case to the Federal Reserve for approval of some previously prohibited crypto-related activities. In simple terms, banks now have an expanded scope of activities in assets like Bitcoin and Ethereum.

Why make this adjustment? The Federal Reserve states that since the policy was released in 2023, the understanding of innovative products and services by the financial system and regulators has deepened. Although the old policy did not completely ban crypto activities, in practice, it was difficult for banks to include assets like Bitcoin and Ethereum on their balance sheets, and stablecoin issuance was largely blocked. Now, some openings have been made.

There is also a broader background— the Trump administration’s clear support for the digital asset industry. This summer, the Federal Reserve already shut down the specialized crypto banking regulatory project established in 2023, and subsequently issued operational guidelines for digital asset custody together with OCC and FDIC. This adjustment is another manifestation of that trend.

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AirdropHuntress

· 2025-12-19 17:19

Looking at this policy change... the data shows that the logic is quite clear. The Federal Reserve is essentially giving a way out for banks without FDIC insurance. In plain terms, it's still a test—loosening regulatory measures while maintaining the bottom line—insured banks are still locked out. This move is somewhat interesting; it appears flexible on the surface but is actually about risk isolation. The key is to see how many banks will dare to declare crypto-related businesses later on, and only then will we know the true stance of the policy.

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