US central bank makes it easier for state banks to try new things, including crypto

The US central bank is changing its rules for state-chartered banks. It is removing a policy that made it harder for these banks to engage in "novel" activities, like those involving crypto assets. The new policy aims to encourage innovation while still ensuring banks are safe and the financial system is stable.

For the last year, state-chartered banks faced a presumption that new activities, especially crypto, were risky and would be scrutinized heavily. This effectively slowed down any innovation in these areas. The new policy removes that hurdle, making it easier for state banks to explore new technologies and services without immediate regulatory pushback. This could lead to more varied financial products and services, particularly in areas like digital assets, from a different class of banks than before.