As expected, the US government has given banks federal permission to conduct cryptocurrency transactions.
In January 2023, Federal Reserve officials prohibited federal banks and regional uninsured banks from providing digital asset services, citing the high risk posed by virtual currencies. However, nearly three years later, officials decided to lift this restriction, ostensibly due to the progress made in cryptocurrency products and services.
At the same time, Federal Reserve officials published new rules allowing insured and uninsured regional banks to engage in digital asset transactions with the regulator’s approval, provided they use robust risk management tools. The agency’s regulation makes no mention of federal banks, so it appears they are still prohibited from engaging in cryptocurrencies.
This assumption is indirectly confirmed by the statement of the head of the Federal Reserve, Michael Barr, who did not support the initiative:
The principle of equal treatment of all banks remains relevant to this day. Therefore, I cannot agree to repealing the rules [adopted in 2023] and adopting new ones that will, by their very nature, encourage regulatory arbitrage, create an uneven playing field for doing business, and provide advantages that are detrimental to financial stability.
Michael Barr