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Fed Scraps Controversial 2023 Crypto Banking Restrictions

Fed Scraps Controversial 2023 Crypto Banking Restrictions

Author:

Global Cryptocurrency

Published:

2025-12-18 13:38:30

15

2

BTCCSquare news:

The Federal Reserve has abruptly withdrawn its 2023 policy constraining supervised banks from engaging with cryptocurrency markets. The rescinded guidance had applied blanket restrictions to both FDIC-insured and uninsured institutions under Fed oversight.

This reversal signals a potential thaw in regulatory hostility toward crypto banking services. Market observers note the timing coincides with growing institutional demand for digital asset exposure through regulated channels.

The move may accelerate bank participation in crypto custody, trading, and settlement services—particularly for Bitcoin and Ethereum. Regional banks previously deterred by compliance uncertainty may now revisit shelved blockchain initiatives.

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