Fed Eases Bank Rules, Big Shift in US Crypto Regulation News

US Crypto Regulation News: Fed's Move to Support Crypto Banks

The U.S. Federal Reserve has made a big change to help support cyptocurrency. It removed some important rules that had made it hard for banks to get involved in digital currency and stablecoins. Before, banks had to get special permission to work with them. Now, they no longer need that approval, which makes it easier for them to offer DeFi-related services. This update has quickly become a focal point in US Crypto Regulation News.

This change is a turning point for digital currency in the U.S. It encourages banks to explore new ideas and services involving digital money. It also shows that the government might be getting ready to include cryptocurrency in the regular financial system, while still keeping things safe and stable. Observers in the US Crypto Regulation News space are watching how this will influence the industry.

In a statement on Thursday, the Federal Reserve said, “These actions ensure the Board’s expectations remain aligned with evolving risks and further support innovation in the banking system.” This means the Fed wants to keep up with new technology while protecting the system from risks.

However, even with this progress, the rules around DeFi are still unclear. Banks and financial companies are unsure about how to stay within the law. Many people believe Congress needs to create clearer laws to help guide the use of digital money. Business leaders are asking for official rules that explain how these digi coins should fit into the financial system. They are waiting to hear more updates from lawmakers. This uncertainty continues to drive discussion in US Crypto Regulation News forums and analysis.

Source: X

Why This Matters:

Digicurrency is becoming an important topic in U.S. politics. In 2024, former President Donald Trump said he wants the U.S. to lead in Bitcoin production. He told investors at a Bitcoin event in Nashville, “I’m excited to be the first American President to speak to a Bitcoin event.” In the past week, Fed Chair, Jerome Powell hinted a change in US crypto regulation news at a possible easing of previously laid rules while acknowledging that digital currencies are becoming more mainstream despite a history of frauds and failures.

Reminder:
The industry has had a tough time since 2022. Back then, the Federal Reserve told banks they needed permission before doing anything with cryptocurrencies. In early 2023, the Fed, along with two other major agencies—the OCC and FDIC—warned banks to be careful with these activities. Now, things are changing.
The Federal Reserve’s latest move, along with actions by other agencies, shows that the U.S. is moving toward accepting digital currencies. Many expect new laws soon to help make the rules clearer. For anyone keeping an eye on US Crypto Regulation News, this is an important moment.