Recently, there has been a significant shift in the financial regulatory landscape in the United States. The Fed announced the removal of special regulatory requirements for banks' encryption activities, marking a major adjustment in the United States' regulatory policy towards the crypto assets industry.

This initiative stems from the banking crisis at the beginning of 2023. At that time, several banks involved in Crypto Assets business found themselves in trouble, triggering heightened scrutiny from regulators regarding the risks of innovative financial technologies. In response to this situation, the Fed had strengthened risk monitoring in areas such as Crypto Assets custody, stablecoin issuance, and blockchain technology applications.

However, over time, the regulatory stance has gradually loosened. In April of this year, the Fed took the lead in withdrawing the pre-approval requirements for crypto business. Shortly after, in July, the Fed, along with the Office of the Comptroller of the Currency ( OCC ) and the Federal Deposit Insurance Corporation ( FDIC ), jointly released guidelines for crypto custody services. Finally, on August 15, this special regulatory program was completely terminated.

This policy adjustment simplifies the regulatory process and eliminates the special review requirements. Banks can now autonomously decide whether to engage in Crypto Assets or fintech businesses based on existing risk management frameworks, without the need for separate reporting. At the same time, regulators have replaced the assessment of 'reputational risk' with more specific financial risk indicators, a move expected to reduce banks' concerns when providing services to crypto companies.

It is noteworthy that the OCC and the FDIC, as important financial regulatory agencies in the United States, played a key role in this policy adjustment. The OCC is under the U.S. Department of the Treasury and is primarily responsible for regulating national banks and federal savings institutions; while the FDIC is an independent federal agency whose main functions include deposit insurance and regulating bank risks.

The adjustments in this series of regulatory policies reflect the efforts of U.S. financial regulators to balance innovation and risk. It not only provides greater space for banking business innovation but also creates a more favorable environment for the development of Crypto Assets. However, how to effectively control risks while encouraging innovation will continue to be a persistent challenge faced by regulators.