The US Federal Reserve has taken a significant step towards integrating cryptocurrencies into the financial system by easing restrictions for banks.
Withdrawal of Previous Restrictions
On April 24, the Federal Reserve announced that it will no longer issue supervisory letters that restricted banks from engaging in crypto and stablecoin activities. These letters previously required state member banks to seek permission from the Fed to provide crypto services.
Reactions from the Financial Community
Michael Saylor, co-founder of Strategy and a long-time Bitcoin supporter, reacted on X, stating that 'banks are now free to begin supporting Bitcoin.'
Potential for Crypto Banking
With these changes, the US banking system may increase its involvement in cryptocurrencies, especially in stablecoins and Bitcoin, which could spur innovation in the crypto banking sector.
The Fed's withdrawal of restrictions could mark the beginning of a new phase in the development of crypto banking in the US, providing users with avenues to engage with cryptocurrencies through regulated financial institutions.
