- Fed, FDIC, and OCC withdrawn oversight restrictions on banks’ crypto activities
- Joint withdrawal of SR 22-6, SR 23-8, and the January 3, 2023 interagency statement
- This includes the prior approval requirement for dollar token operations
- Such activities remain subject to supervisory oversight
- Notification to regulators is still required for the issuance or custody of stablecoins
The Fed, FDIC, and OCC have withdrawn oversight restrictions on banks’ crypto activities, jointly rescinding SR 22-6, SR 23-8, and the interagency statement from January 3, 2023. While crypto-related banking activity remains supervised and subject to prior notification, it no longer requires formal regulatory approval.
More on the Withdrawn Oversight Restrictions
The Fed, FDIC, and OCC had previously issued a set of documents addressing everything from the volatility risks of cryptocurrencies to formal procedures regulating how banks engage with crypto-assets and dollar tokens.
Joint Statement from January 3, 2023. A joint statement by the Fed, FDIC, and OCC outlining risks associated with crypto-asset activity.
Joint Statement from February 23, 2023. An additional statement provides further clarification on operational and liquidity risks.
Supervisory Letter SR 22-6 / CA 22-6. Introduced a requirement for banks to notify regulators in advance of engaging in any crypto-related activity.
Supervisory Letter SR 23-8 / CA 23-5. Required banks to obtain supervisory nonobjection before engaging in activities involving dollar tokens, including issuance or custody of stablecoins on behalf of clients.
The central element in this withdrawal is the rescission of SR 23-8 / CA 23-5, which mandated that banks secure prior regulatory approval (supervisory nonobjection) before initiating any dollar token activity.
As of now, that requirement is no longer in effect. However, the obligation to notify regulators in advance of such activities remains, and banks are still expected to conduct thorough risk assessments and ensure compliance with applicable banking supervision standards.
Conclusion
This represents a highly coordinated and significant shift by the leading U.S. banking regulators. While supervisory oversight is not being removed, banks are being granted greater freedom to integrate crypto into their operations — a step that may ultimately improve access to such services for everyday consumers. Be aware and stay tuned for updates on the rapidly reshaping regulatory and crypto landscape
