The Federal Reserve rescinds the restrictive policies of 2023, easing the stringent restrictions on "new" cryptocurrency activities

The Federal Reserve has officially revoked a restrictive policy introduced in 2023. This policy previously limited state member banks from providing many crypto-related services by setting strict thresholds, unless these services were explicitly permitted for national banks to conduct. The new framework allows uninsured state member banks to apply for approval from the Federal Reserve on a case-by-case basis for "novel" crypto activities, rather than imposing an outright ban. This shift reflects the Federal Reserve's evolving understanding of the risks associated with digital assets and demonstrates the overall relaxation of the regulatory environment in the U.S. under the Trump administration. This move could substantially benefit companies like Custodia Bank, founded by Caitlin Long and licensed in Wyoming. Under the old guidelines, the company had previously been denied a master account from the Federal Reserve