US banks are ‘free to begin supporting Bitcoin’ — Michael Saylor
The US Federal Reserve has withdrawn its 2022 guidance that discouraged banks from engaging with cryptocurrency, potentially boosting Bitcoin adoption among financial institutions. This decision has improved investor sentiment towards Bitcoin. The previous guidance warned of risks associated with crypto and stablecoins. With the withdrawal, banks can now support Bitcoin, simplifying institutional adoption. Legislative efforts, including the STABLE Act and the GENIUS Act, are necessary to further harmonize crypto activities among regulated firms. The Fed's shift is seen as a turning point for Bitcoin's institutional adoption, as prior regulatory hostility hindered traditional financial institutions' participation. Banks are expected to act quickly to meet client demand and compete with crypto-native firms. In Europe, less than 20% of banks offer crypto services despite rising demand.
