U.S. Banking Rules for Digital Assets Get Major Update

U.S. banking regulators have removed old restrictions on how banks can work with digital assets. This change lets banks offer crypto services and work with crypto businesses more easily, as long as they handle risks properly.

According to a recent report by Chainalysis, the Federal Deposit Insurance Corporation (FDIC), Federal Reserve, and Office of the Comptroller of the Currency (OCC) announced these changes on April 24, 2024. Banks no longer need special permission before offering digital asset services.

What Changed for Banks and Digital Assets

Each regulator made specific updates:

1. The OCC canceled Letter 1179 and brought back earlier permissions from Letters 1170, 1172, and 1174. On May 7, 2025, they confirmed banks can buy and sell assets for customers and use outside companies for crypto services.

2. The FDIC’s new guidance says banks they supervise can now work with crypto without asking for approval first if they manage risks correctly.

3. The Federal Reserve dropped four earlier crypto rules, including ones that required special notice for banks wanting to work with digital tokens.

These changes mean banks can now:

• Enter the digital asset market faster
• Offer more crypto services like custody and payments
• Provide banking to crypto businesses
• Work with stablecoin issuers

However, some questions remain unclear:

• Whether banks can keep crypto assets on their balance sheets
• If and how banks can lend against crypto

Despite the more open approach, banks must still follow existing laws like the Bank Secrecy Act and have strong risk controls in place.

How This Compares to Global Rules

While U.S. regulators are now more supportive, global standards from the Basel Committee still create challenges. The Basel rules, set to take effect January 1, 2026, will require banks with international operations to set aside large amounts of capital when holding assets on public blockchains.

These capital requirements could make some activities, like crypto lending, too expensive for large banks to do at scale.

Banks wanting to take advantage of these new opportunities should:

• Create solid risk management systems for digital assets
• Build partnerships with trusted crypto service providers for compliance
• Watch for new guidance on complex issues like crypto lending
• Consider starting with basic services before moving to more advanced offerings

This regulatory shift marks a big change for American banking. After years of tight restrictions, regulators are now giving banks more freedom to explore digital assets with fewer obstacles, as long as they do so responsibly.