The Fed eases restrictions on banks in the crypto space
The United States Federal Reserve has revised its 2023 restrictive policy that effectively banned state-regulated banks from engaging in certain operations with digital assets. This change is significant for the growth of the cryptocurrency market and the integration of digital assets into the traditional financial system.
Source Incrypted
This specifically relates to the custody of cryptocurrencies and the issuance of stablecoins. The regulator is now moving towards more flexible oversight, acknowledging that the market and risk understanding have considerably evolved. This move may encourage greater banking involvement in the crypto sector.
Going forward, this may foster increased stability and development of the digital asset market supported by the banking system, while enhancing regulatory oversight.
