Bitcoin Adoption Set to Rise as Fed Lifts Restrictions on U.S. Banks
Bitcoin adoption in the U.S. could accelerate after the Federal Reserve removed a key obstacle that had discouraged banks from dealing with cryptocurrencies.
On April 24, the Fed withdrew a 2022 supervisory letter that had warned banks about the risks of engaging with crypto and stablecoin services. The move marks a major shift in the central bank’s stance and opens the door for broader institutional involvement in the crypto space.
“This means U.S. banks are now free to begin supporting Bitcoin,” said Michael Saylor, co-founder of MicroStrategy, one of the largest corporate holders of Bitcoin.
Experts say the decision will make it easier for financial institutions to enter the crypto market. “This is a big step toward mainstream adoption,” said Anastasija Plotnikova, CEO of blockchain compliance firm Fideum. “It puts crypto under the same regulatory oversight banks already follow.”
The change comes as lawmakers work on legislation — such as the STABLE Act and GENIUS Act — to create clearer rules for stablecoins and digital assets. Both bills have recently advanced through congressional committees.
Some believe the Fed’s move could signal the end of a long-standing U.S. regulatory crackdown on crypto. “Until now, banks have been sidelined by regulatory pressure,” said Eneko Knörr, CEO of stablecoin firm Stabolut. “Now they have a green light to compete with crypto-native companies like Coinbase.”
Meanwhile, European banks still lag behind, with fewer than 1 in 5 offering crypto services, despite growing investor demand.
Featured image from: cointelegraph.com