Federal Reserve Unveils 2025 Crypto Policy Update, Expands Bitcoin Access for State Banks

COINOTAG News reports that on December 18 the Federal Reserve unveiled a revision to the 2023 restrictive policy on crypto, signaling a regulatory shift toward a more flexible 2025 framework. The update removes the prior strongly opposed presumption on state member banks’ crypto participation and sets the stage for broader engagement with digital assets.

Under the new rule, state banks with FDIC deposit insurance remain constrained under Section 24, while those without deposit insurance can pursue Fed approval on a case-by-case basis for restricted activities. The net effect is expanded regulatory space for select crypto assets activities.

Fed officials say regulatory perspectives have evolved since 2023. The update does not ban Bitcoin or stablecoins, but lowers practical barriers. It reflects the broader US trajectory, alongside the earlier closure of the crypto bank program and joint custody guidance with the OCC and FDIC.