Amid a major change that could change the US financial environment, the Federal Reserve officially regained guidance and directed banks to move away from digital assets.
This means that banks no longer need special permission to engage in bitcoin or stupid activities, and the community and financial institutions love it.
Previously, US banks had to notify the Fed if they wanted to participate in Bitcoin, such as providing management services or partnering with digital asset companies.
This was outlined in 2022 and expanded in 2023 after major platforms like FTX collapsed.
However, on April 24, 2025, the Fed pulled out plugs for these rules. The Federal Reserve said in a statement:
“The board is withdrawing the letter of the 2022 supervision establishing expectations that state member banks will provide advance notice of plans or current crypto asset activities.”
Going forward, Digital Asset Banking activities will be reviewed, just like any other financial services, through the Fed’s regular supervision process.
This coincides with recent changes from the Federal Deposit Insurance Corporation (FDIC) and the Secretary of Currency (OCC).
All three institutions have retracted a 2023 joint statement warning banks about Bitcoin companies.
These statements previously labelled activities that were “contradictory to sound banking practices” or insecure.
One statement even states that digital asset deposits are unpredictable and could lead to sudden outflows. The language is now gone.
This is a major shift from what many in the industry called “Operation Chokepoint 2.0.” Digital asset companies often struggle to get basic banking services due to their industry affiliation.
Related: Castodia Bank rejected master accounts in the Federal Reserve by US court
This is a major change in tone, indicating that the central bank is changing its direction.
Bitcoin fans see this as a green light for the bank to return to the game. One of the most vocal supporters of the move was Michael Saylor, a well-known supporter of strategy executives.
“Banks are now free to start supporting Bitcoin.” Saylor tweeted and shared the Fed’s announcement.
Saylor and others believe this will encourage wider adoption of rare digital assets by making it easier for traditional banks to offer BTC-related services.
The Bitcoin industry has long argued that strict or unclear regulations are curbing US innovation
Many startups and exchanges are considering moving abroad to escape what they consider to be an unfriendly regulatory environment.
Now, the Fed’s policy reversal means that banks no longer require special approval to provide digital asset services. You must follow regular risk management rules such as AML and CDD.
This reduces the burden of compliance and opens up new opportunities for banks to engage in the digital asset sector.
The new guidance is more digital asset-friendly, but it doesn’t mean that banks can do whatever they want. The Fed continues to monitor activities through regular monitoring.
The Fed has rolled back many restrictions, but has not yet updated its policy on granting master accounts. This is an important license that allows banks to access the Federal Reserve core banking services.
Bitcoin-focused banks such as Custodia and Kraken Financial are still awaiting approval.
