Crypto regulation in the world: weekly digest #144

USA

On April 24, 2025, the Federal Reserve Board announced it is withdrawing key guidance and restrictions that had previously limited U.S. banks’ involvement with crypto-assets, stablecoins, and related activities. This marks a significant regulatory shift, effectively removing barriers that had discouraged or complicated banks’ participation in the crypto sector.

• 2022 Supervisory Letter: Banks were previously required to provide advance notification to the Federal Reserve before engaging in any crypto-asset activities. This requirement has been rescinded. Banks no longer need to notify the Fed before starting or expanding crypto-related business lines. Instead, their activities will be monitored through the standard supervisory process.

• 2023 Supervisory Letter: The Fed also withdrew its guidance that required state member banks to obtain a “non-objection” before engaging in stablecoin (dollar token) activities.

• Joint Agency Statements: The Fed, Federal Deposit Insurance Corporation (FDIC), and Office of the Comptroller of the Currency (OCC) jointly withdrew two 2023 statements that had warned banks about risks and exposures related to crypto-asset activities, including fraud and consumer harm.

The Federal Reserve stated that these actions are intended to align its expectations with evolving risks in the financial sector, foster innovation, particularly in the area of digital assets and blockchain technology and to remove regulatory roadblocks that previously limited banks’ ability to offer crypto-related products and services.

This policy change comes amid broader efforts by the Trump administration to create a more crypto-friendly regulatory environment in the U.S., following campaign promises to roll back restrictions on legal blockchain activities.

Banks can now engage in crypto-asset and stablecoin activities without first seeking explicit approval from the Fed or other federal regulators. These activities will be subject to the usual supervisory and risk management processes, just like other banking activities. The removal of these restrictions is expected to encourage more banks to enter the crypto space, offer new digital asset services, and partner with crypto firms, subject to standard regulatory oversight.

The Federal Reserve’s withdrawal of these limitations marks a major regulatory shift, potentially opening the door for greater integration of crypto services within the U.S. banking system, while still maintaining oversight through existing supervisory channels.

Switzerland

The Swiss National Bank (SNB) has firmly rejected proposals to add Bitcoin to its official currency reserves. SNB President cited significant concerns over Bitcoin’s market liquidity and high volatility as primary reasons for the decision. He emphasized that, while cryptocurrencies may appear liquid at times, their liquidity can quickly evaporate during crises, and their well-known price volatility poses a risk to long-term value preservation. Schlegel concluded that, at present, cryptocurrencies do not meet the SNB’s stringent requirements for reserve assets.

Despite the SNB’s rejection, a campaign led by Swiss crypto advocates is pushing to mandate the inclusion of Bitcoin in the central bank’s reserves through a constitutional amendment. The initiative, launched in late 2024, aims to collect 100,000 signatures to trigger a national referendum. If successful, Switzerland could become the first country to legally require its central bank to hold Bitcoin alongside gold in its reserves.

The campaign’s proponents argue that holding Bitcoin would diversify Switzerland’s reserves, reduce reliance on foreign currencies (notably the US dollar and euro), and provide a hedge against inflation and monetary policy risks from abroad. However, the SNB remains unconvinced, reiterating that the risks outweigh the potential benefits at this stage.

While the SNB does not hold Bitcoin directly, it does have indirect exposure through its investments in US companies that maintain Bitcoin as part of their corporate treasuries, such as Tesla, MicroStrategy, and MARA Holdings. This exposure, however, is incidental and not a result of a deliberate reserve policy.

Switzerland’s stance is consistent with other central banks in Europe. For example, the central banks of Poland and Romania have also explicitly ruled out holding Bitcoin as part of their reserves, citing similar concerns. In contrast, the US has seen political debate over the idea, but central bank law currently prohibits the Federal Reserve from holding Bitcoin.

Russia

Russia’s Ministry of Finance, in collaboration with the Central Bank, is preparing to launch a regulated cryptocurrency exchange. This initiative is designed specifically for «super-qualified» or «highly qualified» investors and will operate under an experimental legal regime, not as a general domestic platform.

The exchange will be accessible only to this category of investors who either:

• Hold over 100 million rubles (about $1.2 million) in securities or deposits, or

• Have an annual income exceeding 50 million rubles (about $600,000).

• The exact criteria are still under discussion and may be adjusted.

The platform will operate within Russia’s experimental legal regime, which was enacted to allow controlled crypto transactions for a limited group of participants. This regime is intended to last for three years and will not legalize crypto trading for the general public.

The main goals are to legalize and regulate crypto assets for select investors, bring crypto operations «out of the shadows» and improve market transparency. Officials have indicated that the platform may help Russian companies conduct cross-border settlements using crypto, particularly as traditional channels are constrained by international sanctions.

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