Big News from the FED for Cryptocurrencies! “A Backtrack!”

Positive moves towards cryptocurrencies in the US continue unabated. The latest news comes from the US Federal Reserve (FED).

According to Eleanor Terrett, host of the Crypto in America program, the Fed has withdrawn guidelines restricting some banks from participating in cryptocurrency transactions.

Accordingly, the FED took a huge step regarding cryptocurrencies and officially decided to withdraw the directive that restricted some banks from engaging in cryptocurrency trading.

Eleanor Terrett stated that this directive essentially restricts market access for banks that are not covered by the Federal Deposit Insurance Corporation (FDIC) deposit insurance.

Published in 2023, this directive imposed certain restrictions on small-scale banks without deposit insurance that engaged in cryptocurrency-related activities.

At this point, the FED had previously cited this guideline as the reason for rejecting the main account application of Custodia Bank, which focuses on cryptocurrencies.

In a statement, Michelle Bowman, Vice Chair of Supervision at the Federal Reserve, said that new technologies could increase bank efficiency and enable them to offer better products and services to customers.

Bowman added that by creating a pathway for responsible and innovative proposals, the board helps the banking system operate efficiently while remaining safe and sound.