The Federal Reserve significantly revokes regulatory guidelines for cryptocurrencies and US dollar tokens

According to the official website of the Federal Reserve, the Fed has revoked the regulatory letter requiring state member banks to notify in advance of cryptocurrency activities in 2022 and the non objection procedural letter regarding US dollar token activities in 2023, and has joined forces with the FDIC to withdraw from two statements jointly issued with the OCC in 2023 regarding cryptocurrency and liquidity risks. This move aims to change the conventional regulatory process to supervise cryptocurrency activities and support innovation in the banking system. However, the January 2023 guidelines that have not yet been revoked have raised regulatory consistency issues.