On April 25, the Federal Reserve announced the withdrawal of regulatory guidelines on bank crypto assets and US dollar token businesses, and simultaneously updated the expected standards for related business. The move aims to ensure regulatory requirements are in sync with risk evolution and further support innovation in the banking system. The announcement shows that the Federal Reserve formally repeals the regulatory letter issued in 2022, which previously required state member banks to report on plans to conduct or existing crypto assets business. After the revocation, the Federal Reserve will no longer require banks to fulfill their reporting obligations and switch to monitoring related activities through conventional regulatory procedures.

What was repealed also includes the 2023 guidance document on the "regulatory no objection" process for state member banks to participate in the US dollar token business. In addition, the Federal Reserve and Federal Deposit Insurance Company jointly decided to withdraw from two policy statements on bank crypto assets business and risk exposure jointly issued by federal bank regulators in 2023. The Currency Supervision Office has previously withdrawn from the statement. The Fed said it will work with other regulators in the future to evaluate whether a new guidance framework is needed to support innovation, including crypto asset business.