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Federal Reserve Removes Crypto Restrictions on Banks
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The Federal Reserve Board, along with the FDIC and OCC, has rescinded guidance restricting banks' crypto-asset activities. Chair Jerome Powell emphasized a balanced approach supporting innovation while maintaining safety. This aligns with the current administration's objective to encourage lawful bank involvement in blockchain sectors.
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The move is expected to significantly alter institutional behaviors, potentially increasing participation in crypto custody and trading. Increased regulatory clarity looks set to boost market optimism, evidenced by the upward trend in Bitcoin and Ethereum prices following the announcement.
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The policy shift has multifaceted implications for both the financial and technological spheres. With the removal of previous notification requirements, banks might increasingly integrate crypto operations. This change in stance could foster a broader financial engagement and reestablish the U.S. as a key player in crypto-market innovation.
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Analysts anticipate further developments as regulators adjust their frameworks to accommodate innovative financial technologies. Historical cycles suggest that similar deregulatory measures
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