The U.S. Federal Reserve has officially withdrawn the 2022 supervisory guidance from the banks. Thanks to this game-changing move, the banks in the country will now be able to freely engage with cryptocurrencies, particularly Bitcoin. The decision is being hailed as a regulatory turning point that may cause broader institutional adoption of digital currencies.

A New Banking Era

Now that the Federal Reserve has reversed its restrictions, the banks are free to offer Bitcoin-related services to their customers without needing any prior approval. This removes many regulatory hurdles that previously prevented the integration of digital assets in the U.S. banking system.

The decision is made with the coordination between key regulators, such as the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC), and the Securities and Exchange Commission (SEC). All of these institutions previously maintained a cautious stance on the crypto/banking relationship.

Industry leaders are applauding this news and welcoming it with open arms. Co-founder of MicroStrategy, Michael Saylor called this move “a major inflection point” for the crypto industry. Michael Saylor is a well-known Bitcoin advocate and supported this new move. He commented on this new strategic move, “This legitimizes Bitcoin further and opens the door for broader institutional participation.”

Bitcoin Prices Break $90K Barrier

Due to positive regulatory changes, the Bitcoin prices are responding in tandem to the market sentiment. Responding to the news, Bitcoin has surged past $90K, thanks to the weaker U.S. dollar, Federal Reserve deregulation, and increased pro-crypto attitude.

The industry experts suggest that the policy change eliminates previous friction that limited banks from offering crypto-related services such as custodial solutions and settlement infrastructure. The fact that crypto industry offers security and transparency is receiving mainstream acceptance and renewed attention from investors and financial institutions alike.

Historical Context and Future Outlook

This isn’t the first time deregulation has prompted institutional engagement and market interest. In 2020, the OCC’s decision to allow banks to custody digital assets marked a significant moment for the crypto sector. Analysts expect this latest shift to produce similar results with greater market legitimacy and robust infrastructure and to offer a competitive edge to the country in the global digital economy. The banking infrastructure in the USA plays a more active role in the overall crypto landscape, and the deregulation attempt by the Federal Reserve can mark the beginning of a new era for the crypto industry. It can bring a future where traditional and digital finance can coexist and flourish!

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