2025-23548Rule

Federal Reserve Updates Rules to Balance Crypto Innovation and Safety

Published Date: 12/22/2025

Rule

Summary

The Federal Reserve is updating its rules to help state member banks try new and innovative activities while keeping the financial system safe and sound. They’re replacing a 2023 policy that focused on unusual activities, including crypto, with fresh guidance that also covers uninsured banks. These changes take effect on December 22, 2025, aiming to balance innovation with stability—no surprise fees or delays here!

Analyzed Economic Effects

4 provisions identified: 2 benefits, 1 costs, 1 mixed.

Uninsured Banks: Permission & Safety Tests

An uninsured state member bank may not engage as principal in activities not authorized for national banks or insured state-chartered banks unless the Board permits it under 12 CFR 208.3(d)(2). When deciding, the Board may consider the bank's regulatory framework, risk controls, and whether the bank demonstrates loss-absorbing capacity subordinate to deposits or high-quality liquid assets equal to 100% of demand deposits and other short-term liabilities, or an adequate resolution plan.

2023 Policy Rescinded; 2025 Statement Issued

The Federal Reserve rescinded its January 2023 policy statement and issued a new policy statement that takes effect on December 22, 2025. The 2025 Policy Statement is designed to facilitate innovation by state member banks while aiming to preserve safety and soundness and financial stability.

Insured Banks Restricted to National Bank Powers

The Board generally presumes that insured state member banks may only engage as principal in activities that are permissible for national banks unless those activities are permitted for insured state-chartered banks under section 24 of the Federal Deposit Insurance Act. If an activity is not permissible for national banks, an insured state member bank may engage in it only if the FDIC determines it poses no significant risk to the Deposit Insurance Fund and the bank complies with applicable Board capital standards.

Crypto-Activity Guidance Withdrawn

The Board withdrew from the record the Supplementary Information from 2023 that discussed specific crypto-asset activities. The 2025 Policy Statement replaces the 2023 Preamble discussion of crypto-asset activities.

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Key Dates

Published Date
Rule Effective
12/22/2025
12/22/2025

Department and Agencies

Department
Independent Agency
Agency
Federal Reserve System
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