SoFi Ends Crypto Services Amid Federal Reserve Scrutiny

San Francisco-based SoFi discontinues crypto services as the Federal Reserve increases scrutiny on the banking sector.

In a move that has surprised many, San Francisco-based financial technology company SoFi has announced the discontinuation of its cryptocurrency services. This decision comes at a time when the Federal Reserve has been intensifying its scrutiny of the banking sector. Despite the recent surge in token prices, SoFi has chosen to end its crypto offerings, leaving existing customers with a limited timeframe to migrate their holdings to another platform.

Transitioning to

As part of the discontinuation process, SoFi has partnered with to facilitate the migration of its customers’ crypto assets. U.S.-based users can no longer create new crypto accounts, and existing customers have until December 19th to transfer their holdings to the new platform. If customers fail to take action, their holdings will be sold, potentially resulting in significant tax liabilities.

The terms of the agreement between SoFi and have not been disclosed. However, expects hundreds of thousands of customers to switch over, bringing with them hundreds of millions of dollars in crypto. Additionally, customers who choose to transition to will gain access to advanced services, including trading in a variety of tokens and the ability to self-custody their crypto for participation in decentralized finance.

Regulatory Constraints and SoFi’s Bank Charter

SoFi’s decision to end its crypto services stems from regulatory constraints and conditions tied to its bank charter. In 2022, SoFi received a bank charter that was contingent upon either obtaining the necessary approvals for its crypto business or discontinuing it. The Federal Reserve had previously found that SoFi’s crypto trading subsidiary, SoFi Digital Assets, engaged in certain activities that were not permissible for a bank holding company.

According to an SEC filing, SoFi had the option of three one-year extensions for its crypto business, provided that it did not expand the impermissible activities. However, the company had warned that it could wind down its crypto operations swiftly and forcibly liquidate customers’ holdings during a market downturn.

Increased Federal Reserve Scrutiny

SoFi’s exit from the crypto market aligns with the Federal Reserve’s heightened scrutiny of the sector. In August, the central bank launched a novel activities supervision program to oversee firms’ involvement in digital assets and blockchain technology. This program is part of the Federal Reserve’s broader efforts to regulate and monitor the rapidly evolving cryptocurrency landscape.


SoFi’s decision to end its cryptocurrency services amid increased scrutiny from the Federal Reserve highlights the challenges faced by banks and financial institutions entering the crypto market. The partnership with provides a seamless transition for SoFi’s customers, offering them access to advanced services and the opportunity to participate in decentralized finance. As the regulatory landscape continues to evolve, the future of crypto services within the banking sector remains uncertain.






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