Fed Lifts Crypto Banking Restrictions in Policy Reversal
The Federal Reserve has rescinded its 2023 constraints on bank involvement with digital assets, marking a strategic pivot toward financial innovation. The MOVE clears regulatory uncertainty for state-chartered institutions seeking to custody cryptocurrencies or issue stablecoins.
Both insured and uninsured state member banks may now petition for expanded crypto activities under revised guidelines. The December 17 policy shift reflects growing institutional acceptance of blockchain infrastructure within traditional finance.
This regulatory thaw coincides with rising institutional demand for Bitcoin and ethereum exposure through regulated channels. Market observers note increased activity in crypto-native banking services following the announcement.
