The triumvirate of federal banking regulators—Fed, FDIC, and OCC—appears to be choreographing an unprecedented ballet of coordination.
Previous interagency statements (those labyrinthine documents that have collected digital dust on regulatory websites) are being withdrawn to pave the way for a more coherent, innovation-friendly approach.
Banking entities, long accustomed to maneuvering regulatory waters with trepidation, might actually find themselves with something resembling clarity.
After decades of navigating regulatory murk with cautious oars, banking institutions glimpse the shocking possibility of actual guidance.
The Federal Reserve has specifically rescinded the supervisory letter on crypto-asset advance notifications from 2022, signaling a substantial shift in approach.
The FDIC has now issued FIL-7-2025 on March 28, 2025, which officially rescinds the previous guidance.
This shift aligns with the broader vision of the Crypto Task Force established under SEC Commissioner Hester Peirce to create clearer compliance pathways for the industry.
Risk management remains the regulatory lodestar, however.
Financial institutions venturing into the crypto frontier must still demonstrate robust risk protocols—a reasonable expectation given the volatility that characterizes digital asset markets.
The evolutionary nature of crypto risks necessitates corresponding evolution in mitigation strategies.
This regulatory recalibration represents not abandonment of oversight but rather its maturation.
As the digital asset ecosystem continues its inexorable expansion, these regulatory adjustments suggest American financial authorities might—against all historical precedent—be positioning themselves ahead of the innovation curve rather than perpetually struggling to catch up.
¹A truly revolutionary concept in regulatory circles.
