Federal Reserve Chair Jerome Powell has moved only partially to implement a January 23 executive order from President Donald Trump that directed U.S. banking regulators to “protect and promote fair and open access to banking services,” including for crypto businesses. The Federal Reserve announced that it has withdrawn several pieces of 2022–2023 supervisory crypto guidance, notably rescinding expectations that banks provide advance notice before engaging in crypto-asset activities, ending a burdensome “non-objection” process for certain stablecoin activities, and easing some language on banks’ crypto limitations and exposures. The Fed says it will now oversee banks’ digital-asset activities through its normal supervisory process and, together with the FDIC and OCC, has withdrawn related joint guidance while considering whether new guidance is needed. Crypto-aligned politicians and industry figures argue these steps fall far short of what Trump’s order requires and characterize them as largely cosmetic. Senator Cynthia Lummis and Wyoming banker and Custodia founder Caitlin Long contend that the Fed is still effectively constraining crypto by leaving in place earlier policy statements and practices they say contribute to “Operation Chokepoint 2.0” – an alleged informal campaign to pressure banks away from crypto clients. Long highlights that 2023 Fed guidance requiring robust compliance, AML/CTF controls, and risk management for crypto custody and related services remains intact, which she views as continuing to disadvantage crypto-focused banks. The episode underscores Powell’s determination to preserve Fed policy independence and proceed with incremental, risk-focused adjustments rather than embracing the sweeping deregulatory shift many in the crypto sector expected from Trump’s directive.

AI-generated background, compiled from web sources — not editorial content.

More coverage

Explore the topic

Loading related coverage…

Explore the full feed

Comments

Loading comments…