Fed Scraps 2023 Crypto Banking Limits: A Green Light for Digital Assets?
The Federal Reserve just tore up its own rulebook. In a sharp reversal, the central bank has officially rescinded its 2023 guidance that effectively handcuffed traditional banks from diving into crypto services.
The Regulatory U-Turn
Forget navigating a maze of prohibitive memos. The Fed's latest move clears a major roadblock, signaling a potential thaw in the long-standing chill between Wall Street and blockchain. It's a pivot from cautious restriction to—at minimum—tacit permission.
What's Really Changing?
Banks no longer need to treat every crypto-related inquiry as a compliance red alert. The door is now cracked open for custody, trading, and balance sheet activities involving digital assets—provided banks still do their homework on risk. It’s less a free pass and more a removal of the 'Do Not Enter' sign.
The Ripple Effect
Expect boardrooms to buzz. This isn't just about compliance officers sleeping easier. It's about capital, liquidity, and legitimacy flowing into the crypto ecosystem from the world's most guarded vaults. The institutional dam might finally be springing a leak.
A cynical take? The Fed often moves with the precision of a weather vane in a hurricane—today's policy shift is just tomorrow's forgotten footnote. But for now, the banking giants just got their hall pass to the digital asset playground. Let's see if they actually know how to use the swings.
The US Fed has withdrawn a 2023 policy that limited how banks under its supervision could engage with cryptocurrencies. The now-rescinded guidance applied to both insured and uninsured banks supervised by the Fed.
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