Federal Reserve Eases Digital Asset Rules

Until now, U.S. banks had to notify the Fed if they wanted to get involved in Bitcoin, such as offering custody services and partnering with digital asset companies.

That was outlined in 2022 and expanded in 2023 after the collapse of major platforms like FTX, which raised concerns about fraud, consumer risk and financial instability.

But on April 24, 2025, the Fed pulled the plug on those rules. The Federal Reserve said in a statement:

“The Board is rescinding its 2022 supervisory letter establishing an expectation that state member banks provide advance notification of planned or current crypto-asset activities.”

Going forward, digital asset banking activities will be reviewed like any other financial service — through the Fed’s regular supervision process.

This aligns with recent changes from the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC).

All three agencies have now withdrawn their 2023 joint statements that warned banks about Bitcoin companies.

Those statements had previously labeled such activities as “inconsistent with sound banking practices” or not safe.

One of the statements even said digital asset deposits were unpredictable and could result in sudden outflows. That language is now gone.

This is a big change from what many in the industry called “Operation Chokepoint 2.0” — when digital asset companies often struggled to get basic banking services because of their industry affiliation.

Related: Custodia Bank Denied Federal Reserve Master Account by US Court

This is a big shift in tone, signaling that the central bank is changing its direction.

Bitcoin fans see this as the green light for banks to get back in the game. One of the most vocal supporters of the move was Michael Saylor, Executive Chairman of Strategy and a well-known advocate.

“Banks are now free to begin supporting Bitcoin,” Saylor tweeted, sharing the Fed’s announcement.

Saylor and others believe this will drive broader adoption of the scarce digital asset by making it easier for traditional banks to offer BTC-related services.

The Bitcoin industry has long argued that harsh or unclear regulations were stifling innovation in the U.S.

Many startups and exchanges have even considered moving overseas to escape what they saw as an unfriendly regulatory environment.

Now with the Fed’s policy reversal, banks no longer need special approval to offer digital asset services. They just need to follow regular risk management rules like AML and CDD.

This reduces compliance burdens and opens up new opportunities for bank involvement in the digital asset space.

While the new guidance is more digital-asset friendly it doesn’t mean banks can do whatever they want. The Fed will still be monitoring their activities through regular oversight.

Although the Fed has rolled back many restrictions, they have not yet updated their policy on granting master accounts — a key license that allows banks to access the Federal Reserve’s core banking services.

Bitcoin-focused banks like Custodia and Kraken Financial are still waiting for approval.