Federal Reserve Revokes Crypto Guidance for Banks, Signals Open Market Approach – Coincu

Several key U.S. regulatory bodies, including the Federal Reserve and FDIC, have rescinded prior guidance on banks’ cryptocurrency activities on April 24, 2025. This action removes barriers previously faced by banks engaging in crypto-asset services. The change could hasten Bitcoin’s inclusion in banking services, broadening crypto’s role in traditional finance.

The Federal Reserve, FDIC, and OCC have withdrawn previous regulatory requirements for banks engaging in crypto-asset activities. This includes the rescission of letters from 2022 and 2023, which demanded prior notice and approval for these activities. These agencies seek to eliminate these processes and instead rely on normal supervisory practices.

Bitcoin’s Growing Bank Integration Seen as Positive Shift

Banks are now free to offer crypto-related services without special approvals. This shift is expected to hasten the introduction of products like Bitcoin checking accounts and crypto-backed loans. By removing these regulatory hurdles, it gives financial institutions more latitude for innovation.

The market has met this shift with positivity, anticipating increased institutional involvement. The Federal Reserve noted that the move supports innovation and aligns with evolving risks in the financial sector. This stance is seen as a step toward integrating Bitcoin and stablecoins into the mainstream financial system.

The Federal Reserve Board noted, “The Board’s expectations remain aligned with evolving risks and further support innovation in the banking system.”

Market Data and Insights

Did you know? The Federal Reserve’s decision may parallel how the 1990s’ regulatory deregulatory efforts led to internet banking’s rapid evolution, marking a significant shift in financial technology acceptance.

According to CoinMarketCap, Bitcoin (BTC) currently trades at $94,343.80, boasting a market cap of $1.87 trillion and a market dominance of 63.42%. Price variations indicate a 1.02% decrease in 24 hours but show an 11.33% increase over seven days. Trading volume has decreased by 46.40% to $21.70 billion, with a circulating supply of 19.85 million BTC.

Coincu researchers suggest this regulatory relaxation could pave the way for widespread adoption. Historically, less stringent rules have facilitated innovation and collaboration in the financial sector, potentially making such regulatory changes a catalyst for technological integration within banking.