The Fed rescinded its 2023 policy that prevented Fed‑supervised uninsured banks from engaging in activities not allowed for national banks (including crypto services), calling the guidance outdated. It issued new guidance establishing a formal pathway for insured and uninsured state member banks to pursue "innovative activities" such as cryptocurrencies, subject to risk‑management expectations. Custodia Bank CEO Caitlin Long praised the change; Governor Michael Barr dissented, warning it could encourage regulatory arbitrage and undermine a level playing field.

The Fed withdrew a prior restriction that prevented Fed‑supervised uninsured banks from offering activities not permitted for national banks and created a formal pathway for state member banks to pursue crypto-related "innovative activities," which eases regulatory barriers (bullish). The move was not unanimous—Governor Barr dissented citing risks of regulatory arbitrage—tempering the bullish effect (reduces impact).