The Federal Reserve just announced that it’s loosening its scrutiny over banks’ interactions with crypto. It has previously maintained a program to monitor these activities, which is now closing.
This act mirrors an executive order President Trump signed last week, which sought to curtail unfair crypto debanking. This seems like a bullish development for the industry.
Federal Reserve’s New Crypto Guidelines
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The Federal Reserve has been the target of ire from much of the crypto industry over recent months, with its Chair Jerome Powell staunchly refusing to lower interest rates. This has prompted a storm of criticism led by President Trump, but it’s not all bad. Just today, the Fed announced that it was loosening its own crypto regulations:
“The Federal Reserve Board on Friday announced that it will sunset its novel activities supervision program and return to monitoring banks’ novel activities through the normal supervisory process. Since the Board started its program to supervise certain crypto and fintech activities in banks, the Board has strengthened its understanding of those activities,” it claimed.
Since the Fed has this increased understanding of crypto, it claims, it’ll sunset this program. This mirrors recent developments in Trump’s war on crypto enforcement, as several executive orders sought to curtail unfair debanking practices.
By refusing to monitor banks’ interactions with crypto, the Federal Reserve’s decision is very in line with these orders. It’s unclear how this new situation will play out in the markets, but it seems highly bullish.
source : https://beincrypto.com