Federal Reserve ends crypto restrictions for banks

This week, the Federal Reserve Bank lifted its questionable guidelines – which caught a defacto – to banks crypto activities.

With it follows die US-Notenbank der Federal Deposit Insurance Corporation (FDIC) und dem Office of the Comptroller of the Currency (OCC), die Similar measures had already taken before. This decision marks a significant change in US crypto policy and means the end of the controversial “Operation Choke Point 2.0“.

Background: from over -regulation to deregulation

The original guidelines, introduced under the bidges, requested approval from banks before they were able to invest in crypto-assets or stable coin projects. These measures were criticized as part of the so-called “Operation Choke Point 2.0”, an unofficial strategy that aimed to exclude crypto companies from the traditional banking system. Documents of the FDIC and statements by industry representatives support these allegations.

The decision of the Federal Reserve to lift their restrictive guidelines on crypto activities from banks not only marks a political change of course, but also has an immediate impact on previously affected institutions. A prominent example is Custodia Bank, a financial institution specializing in digital assets based in Wyoming. In 2023, the Federal Reserve Custodia refused access to the payment system, which was considered part of the unofficial “Operation Choke Point 2.0”. The bank prevented this measure from carrying out basic financial services such as the clearing of checks or the transfer of securities.

With the current deregulation, banks could now try again to gain complete access to the traditional financial system, which would represent an important step for the integration of crypto companies into the regulated banking sector.

Political change of course under Trump

In accordance with President Trump's promise to make the United States a leading Bitcoin nation, the guidelines are lifted. Trump had already announced in March to reduce regulatory hurdles for crypto companies and to create clear framework conditions for stable coins. The current decision of the Federal Reserve is considered a step in this direction. With the deregulation, banks could now become increasingly into the crypto sector, which could lead to a stronger integration of digital assets into the traditional financial system.