MSTR's Michael Saylor Says Banks Are 'Free' To Support Bitcoin As Federal Reserve Withdraws Crypto Guidance
The Federal Reserve revoked its guidance for banks that required them to inform the regulator before engaging in any cryptocurrency-related activity on Thursday.
What Happened: The Fed retracted its 2022 supervisory letter that mandated banks to notify in advance about their cryptocurrency endeavors, among other risk management practices and compliance controls, according to a press release.
The central bank said it no longer expects such notifications and will instead monitor banks’ cryptocurrency activities through the regular supervisory process.
The Fed also pulled back its 2023 supervisory letter related to the banks’ engagement with dollar-backed stablecoins.
“The Board intends to work with the agencies to evaluate if there is a need for additional guidance to promote innovation, including crypto-asset activities,” a statement read.
Cryptocurrency mogul and Strategy (NASDAQ:MSTR) co-founder Michael Saylor cheered the announcement, stating, “Banks are now free to begin supporting Bitcoin.”
Why It Matters: This decision comes on the heels of Fed Chair Jerome Powell’s statement earlier this month indicating a potential relaxation of certain cryptocurrency and banking regulations.
Powell acknowledged the increasing mainstream acceptance of cryptocurrencies and emphasized the need for a clear regulatory framework, especially around stablecoins.
The Trump administration has been vocal about its support for the cryptocurrency industry, instituting a dedicated SEC crypto task force, repealing an accounting directive that prohibited banking institutions from providing custodial services for digital assets, and establishing a Strategic Bitcoin (CRYPTO: BTC) Reserve.
Read Next:
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Photo Courtesy: Bukhta Yurii on Shutterstock.com
① During the campaign period, US stocks, US stocks short selling, US stock options, Hong Kong stocks, and A-shares trading will maintain at $0 commission, and no subscription/redemption fees for mutual fund transactions. $0 fee offer has a time limit, until further notice. For more information, please visit: https://www.webull.hk/pricing
Webull Securities Limited is licensed with the Securities and Futures Commission of Hong Kong (CE No. BNG700) for carrying out Type 1 License for Dealing in Securities, Type 2 License for Dealing in Futures Contracts and Type 4 License for Advising on Securities.
English