The FED Takes a Step Back! A Major Move Towards Cryptocurrency Has Arrived!

The Federal Reserve has made an important move for the cryptocurrency sector. Accordingly, the FED announced that it has lifted the regulatory restrictions imposed on banks’ cryptocurrency and stablecoin activities.

In a formal announcement, the FED announced that it has canceled the 2022 and 2023 audit letters requiring member state banks to notify in advance about cryptocurrency and stablecoin activities.

The FED announced that such activities will now be monitored through a standard auditing process and stated that it will adopt a more flexible approach regarding the activities of banks.

"The Federal Reserve Board announced on Thursday that it has withdrawn guidance related to banks’ activities in crypto assets and dollar tokens, and that it has made relevant changes to its expectations regarding these activities.

This situation ensures that the Board’s expectations remain aligned with the evolving risks and further supports innovation in the banking system.

As a result, the FED will no longer wait for banks to report and will instead monitor banks’ cryptocurrency activities through the normal auditing process.

The FED also added that it will collaborate with US institutions to assess whether additional guidance is needed to support innovation, including activities related to cryptocurrencies.

The FED’s move was positively received by the cryptocurrency sector, while famous Bitcoin bull Michael Saylor stated in his post, “Banks may now start to support Bitcoin.”