The Federal Reserve’s decision to withdraw the crypto activity reporting requirement for banks, announced on April 24, 2025, removes a 2022 supervisory letter that mandated prior notification for crypto-related activities, signaling a shift toward mainstream financial integration of digital assets like Bitcoin.
This policy change aligns with the Trump administration’s crypto-friendly initiatives, including the SEC’s January 2025 revocation of a rule requiring banks to record crypto as liabilities, potentially reducing regulatory hurdles and encouraging banks to offer crypto services.
While this could boost crypto adoption, a 2023 joint statement by the Federal Reserve, FDIC, and OCC—now withdrawn—highlighted risks like fraud in the crypto sector, noting that misleading representations by crypto firms contributed to significant investor harm, suggesting less oversight might increase such risks.
