Bitcoin adoption among United States financial institutions could see a major boost after the US Federal Reserve withdrew its guidance discouraging banks from engaging with cryptocurrency.
On April 24, the Fed withdrew its 2022 supervisory letter that served as guidance to deter banks from engaging in crypto and stablecoin activities. The withdrawal spurred a notable uplift in Bitcoin (BTC) investor sentiment.
The Federal Reserve Board’s withdrawal giving banks guidance on crypto activities. Source: Federal Reserve
The 2022 guidance initially warned that crypto may pose risks to investors and the stability of the US financial system.
The Fed’s move means that “banks are now free to begin supporting Bitcoin,” said Michael Saylor, co-founder of the world’s largest corporate Bitcoin holding firm, Strategy, in an April 25 X post.
Source: Michael Saylor
The Fed’s decision “is a