What changed US crypto bank policy?

TLDR

The pivotal change was the Federal Reserves December policy reversal that lifted its 2023 restrictions and adopted a risk?based, case?by?case approval framework for crypto activities at uninsured state member banks, improving banks ability to engage with digital assets while keeping supervisory controls in place (policy update).

1. Fed withdrew 2023 limits and emphasized different activity, different risks, different regulation (policy update).
2. OCC granted conditional national trust bank charters to crypto firms for custody under federal oversight (OCC trust charters).
3. Congress passed a stablecoin law in 2025, creating standards banks and issuers can operate under (stablecoin framework).

Deep Dive

1. Fed Reversal

The Federal Reserve rescinded its 2023 stance on crypto activities for uninsured state member banks and replaced it with a risk?based approach, allowing case?by?case approvals and aligning oversight with the specific risks of each activity (policy update).

1. The change allows banks to seek formal approvals for crypto?related services within a defined supervisory process (policy update).
2. Internal dissent cautioned about uneven practices, underscoring continued prudential scrutiny (policy update).

2. OCC Charters

The OCC granted conditional national trust bank charters to several crypto firms, expanding federally supervised custody and fiduciary functions without full depository permissions (OCC trust charters).

1. Charters focus on custody and fiduciary oversight, not insured deposits or traditional lending (OCC trust charters).
2. Approvals require strict governance, risk controls, and ongoing reporting (OCC trust charters).

3. Stablecoin Law

Congress enacted a national stablecoin framework in 2025 that defines reserves, disclosures, and issuer permissions, moving oversight from ad?hoc guidance to formal standards (stablecoin framework).

1. The law mandates high?quality liquid reserves and regular disclosures by issuers (stablecoin framework).
2. Agencies have begun outlining how institutions can apply to issue or manage stablecoins under the new regime (stablecoin framework).

Conclusion

U.S. crypto bank policy shifted from blanket prohibitions and fragmented guidance to supervised, risk?based participation. The Feds reversal, OCC trust charters, and a federal stablecoin framework collectively open doors for banks to engage with digital assets, while maintaining stringent oversight and controls.