Federal Reserve withdraws crypto and dollar-token notification and nonobjection guidance

What changed

The Federal Reserve withdrew prior guidance directing supervised banks to notify the Board before crypto activities and establishing a written nonobjection process for dollar-token activities. Crypto and dollar-token activities remain subject to ordinary legal and safety-and-soundness supervision.

Who it affects

• Federal Reserve-supervised banking organizations
• Advisers evaluating bank stablecoin, custody, and settlement counterparties

What is still open

• Whether replacement joint-agency guidance will be issued
• How reserve-bank and Board exam practices will converge

What it means for an advisor

• Refresh counterparty questionnaires that assumed a special Federal Reserve nonobjection
• Continue evaluating actual control, liquidity, redemption, operational, and legal risks

Previous interpretation

Covered banks were expected to provide advance notice and, for dollar-token activities, receive written supervisory nonobjection.