Fed rescinds Biden-era crypto guidance
- Key insight: The Federal Reserve is loosening its reins on crypto activities allowed for banks, with particular attention paid to noninsured state-chartered banks.
- What’s at stake: Custodia, a special purpose depository institution, has been engaged in a lawsuit against the Fed over the central bank’s denial of Custodia’s application for a master account.
- Expert quote: “I cannot agree to rescind the current policy statement and adopt a new one that would, in effect, encourage regulatory arbitrage.” — Fed Gov. Michael Barr.
WASHINGTON — The Federal Reserve has scrapped a 2023 policy statement that tried to limit some banks’ use of crypto-asset activities.
“Since the policy statement was published, the financial system and the…
