FED says YES to crypto
The Federal Reserve has opened new doors for banks to work with crypto, marking a major change in its policy.
In a historic move, the Federal Reserve announced it will allow banks to engage more freely with cryptocurrencies, lifting several previous restrictions. Banks can now issue, hold, and transfer crypto assets, as long as they meet strict risk management and consumer protection rules. This decision follows growing pressure from the financial sector to modernize outdated regulations.
The Fed emphasized that banks must notify regulators before offering crypto services and demonstrate strong compliance systems. Institutions will also need to prove they can manage risks like market volatility and cybersecurity threats. The announcement is seen as a win for traditional banks seeking new revenue streams, but officials made it clear that public trust and financial stability must come first.
Crypto adoption by banks is expected to rise significantly as a result, but each move will be closely watched to avoid repeating past financial crises. The new guidelines aim to balance innovation with caution, providing a clearer framework for the banking industry's involvement in digital assets.
