The U.S. central bank rescinded a 2023 policy, adopting a case-by-case approach to digital asset activities for state member banks.
The Old Policy Scrapped for a New Framework
The Federal Reserve Board withdrew a 2023 policy statement on December 17, 2025, that limited state member banks to activities permissible for national banks.
The 2023 policy created a strong presumption against novel activities, such as holding crypto assets as principal, for state member banks without federal deposit insurance.
It blocked many crypto-focused banks from accessing Federal Reserve master accounts and payment systems.
The new policy replaces it with a framework based on the principle of same activity, same risks, same regulation.
The Board noted that its understanding of digital asset risks has evolved since 2023.
This shift applies to both insured and uninsured state member banks, allowing case-by-case approvals for innovative activities if they meet safety and soundness standards.
A Clearer Path for Banking and Digital Assets
This change enables banks to pursue digital asset services like crypto custody and asset tokenization.
Uninsured state member banks can now seek permission for activities not allowed for insured banks, provided they demonstrate strong risk management.
For example, banks may integrate stablecoins into operations, injecting stability into the digital asset market.
The policy fosters trust by involving regulated banks in crypto, which could speed adoption among consumers and institutions.
It aligns with federal laws, ensuring activities comply with section 24 of the Federal Deposit Insurance Act for insured banks.
A Pivotal Moment for FinTech
Banks must still prove robust controls to engage in digital assets.
The Federal Reserve’s action positions the U.S. to compete globally in decentralized technology, bridging traditional finance and crypto.
This follows other 2025 shifts, like evolving supervisory views on stablecoins.