Crypto Banking Restrictions Rescinded in US: 2025 Changes

On April 24, 2025, the Federal Reserve quietly pulled the plug on two major rules that had been holding back banks from offering crypto services. No press conferences. No fanfare. Just a simple announcement that removed the need for banks to ask permission before letting customers buy, hold, or custody Bitcoin and other digital assets. This wasn’t a tweak. It was a full reset of how American banks can interact with cryptocurrency.

What Exactly Changed?

Before 2025, if you worked at a bank and wanted to offer crypto custody or handle stablecoins, you had to jump through hoops. The Federal Reserve’s SR 22-6 and SR 23-8 letters forced banks to notify regulators in advance and get formal approval before even starting. It wasn’t just bureaucracy-it was a de facto ban. Many banks just gave up. Why risk a months-long approval process when you could focus on mortgages or small business loans instead?

The Office of the Comptroller of the Currency (OCC) led the charge. On March 7, 2025, they rescinded Interpretive Letter 1179, a 2021 rule that had told national banks they needed special permission to custody crypto. Now, banks can hold digital assets for customers without asking. The FDIC followed on March 28, removing its own notification requirement for state-chartered banks. Suddenly, every major bank in the U.S. could legally offer crypto services without waiting for a regulator’s green light.

Why Now?

The change didn’t come out of nowhere. After years of crypto collapses-FTX, Celsius, BlockFi-the regulators in 2021 and 2022 took a hardline stance. They wanted to protect consumers and the financial system. But over time, they realized something: the banks weren’t the problem. The problem was unregulated exchanges and shady operators outside the banking system.

By 2024, banks had already built out crypto custody systems, hired compliance teams, and trained staff. The Federal Reserve’s own examiners had become fluent in blockchain technology. They saw that banks were handling crypto responsibly-often more responsibly than some crypto-only firms. So instead of fighting the tide, they decided to bring crypto into the regulated mainstream.

The OCC said it plainly: "The supervisory non-objection process is no longer necessary." They didn’t lower standards. They just stopped treating crypto like a dangerous experiment.

What Can Banks Do Now?

Under the new rules, banks can legally do three big things without prior approval:

• Custody crypto assets for customers-holding Bitcoin, Ethereum, or other tokens securely on their behalf.
• Hold stablecoins like USDC or USDT as part of reserve management or payment systems.
• Participate in independent node verification networks, meaning banks can run their own blockchain nodes to validate transactions.

That’s it. No more guesswork. No more legal anxiety. If a customer wants to buy Bitcoin through their Chase or Wells Fargo app, the bank can now offer it without calling the regulator first.

What’s Still Off Limits?

Don’t get the wrong idea. This isn’t a free-for-all. Banks still can’t:

• Hold non-stablecoin crypto on their own balance sheets-they can’t buy Bitcoin as an investment.
• Lend against crypto assets-no crypto-backed loans yet.
• Trade crypto for profit-market-making or proprietary trading is still restricted.

The regulators are drawing a line: banks can act as custodians and facilitators, not speculators. That’s intentional. They want to protect depositors and the stability of the banking system. If you want to trade crypto for gains, you still need to go to Coinbase or Kraken.

What This Means for You

If you’re a regular bank customer, this change means faster, simpler access to crypto. Soon, you’ll see options like:

• Buy Bitcoin directly in your mobile banking app.
• Receive crypto payments from employers or freelancers into your checking account.
• Use stablecoins to send money overseas with lower fees and faster settlement.

For crypto users, this is a huge win. No more juggling between a bank account and an exchange. Your money can stay in one place, protected by FDIC insurance on your fiat balances and regulated custody on your crypto.

For crypto startups, this is a game-changer. Instead of building everything from scratch, they can now partner with banks that already have compliance, security, and customer trust built in. Think of it like Uber partnering with taxi companies instead of fighting them.

What’s Next?

The regulators have made it clear this is just the first step. In their April 2025 joint statement, the Fed, OCC, and FDIC said they’re working with the President’s Working Group on Digital Asset Markets to draft more guidance. What’s left to figure out? Lending, staking, DeFi integration, and how to handle volatile crypto assets beyond stablecoins.

Some experts believe the next big move will be allowing banks to offer crypto-backed loans-something that’s already common in Europe and Asia. Others think we’ll see banks launch their own stablecoins, backed by U.S. Treasuries and regulated like money market funds.

One thing’s certain: the door is open. The banks are ready. The technology is proven. And customers are waiting.

Why This Matters Beyond Banking

This isn’t just about banks. It’s about the future of money. For years, crypto was seen as something separate-outside the system. Now, it’s being folded into the core of American finance. That shift changes everything.

When your bank offers crypto custody, it validates digital assets as real financial instruments. When your paycheck can be paid in USDC, it makes crypto useful, not just speculative. When you can send money to family overseas using a stablecoin with near-zero fees, it exposes how broken traditional cross-border payments are.

This isn’t the end of regulation. It’s the beginning of smarter regulation. The old rules treated crypto like a fire hazard. The new rules treat it like electricity-useful, powerful, and dangerous if misused. But now, the power grid is open for business.

Bottom Line

The 2025 crypto banking changes aren’t about making crypto popular. They’re about making it normal. The regulators stopped treating it like a threat and started treating it like a tool. Banks can now serve their customers better. Customers get more control. And the financial system becomes more resilient by bringing innovation under its umbrella.

This isn’t the end of regulation. It’s the beginning of a smarter one. And for the first time in years, the U.S. banking system is finally catching up to the future-not trying to stop it.