The US Federal Reserve has announced the withdrawal of guidance for banks involved in crypto asset and stablecoin-related activities. This move rescinds a 2022 supervisory letter that mandated state member banks to provide advance notification of planned or ongoing crypto-asset activities. Going forward, any crypto-related activities will be monitored through the Fed's standard supervisory process. Additionally, the Fed is also rescinding guidance from 2023 that affected state banks' engagement with stablecoin activities. This decision marks a significant shift in regulatory oversight as the Federal Reserve adapts its approach toward the developing landscape of cryptocurrency and stablecoins. The evolving regulatory environment will likely shape how banks and financial institutions manage their crypto engagements moving forward, although further details are expected as this story develops.

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