The Federal Reserve has made changes in its oversight of crypto banks by ending specialized supervision and integrating it into standard processes.
Impact on Banking and Crypto Relations
Ending the specialized oversight may encourage banks to engage with crypto firms more readily. This regulatory shift aligns with moves by the Office of the Comptroller of the Currency and the FDIC, which have also withdrawn specialized crypto guidance.
Potential Shifts in Crypto Banking
No immediate shifts in banking flows or liquidity are evident. However, past regulatory changes hint at possible increased banking activity with regulated exchanges and custodians, enhancing accessibility for cryptocurrencies like BTC and ETH.
Conclusion
The Federal Reserve's actions may propel banks to pursue collaborations with crypto firms more directly, impacting the digital asset market.
Regulatory changes made by the Federal Reserve could significantly influence the future interactions between banks and crypto firms.
