- No special oversight
- Another adoption catalyst
Michael Saylor, executive chairman at business intelligence firm Strategy, claims that the road is now “clear” for Bitcoin and the banking sector after the Federal Reserve ditched a crypto bank oversight program.
No special oversight
The controversial program, which was launched back in August 2023, subjected those banks that want to experiment with cryptocurrency-related services or blockchain projects to heightened scrutiny.
It was meant to control and contain possible risks associated with the mercurial sector with the help of focused oversight.
Now, however, the Fed is shelving the program since it understands risks better and knows how banking institutions are capable of managing them. Hence, existing oversight tools are now deemed to be sufficient for monitoring crypto and fintech activities.
Another adoption catalyst
The Fed’s latest move comes after crypto has achieved significant progress in terms of mainstream institutional adoption and regulatory clarity in the U.S.
The Fed’s latest move is likely to enable further integration of crypto into traditional finance.
As reported by U.Today, U.S. Federal Reserve Chair Jerome Powell acknowledged that crypto was going mainstream.
Pro-Bitcoin Senator Cynthia Lummis has also described this as a “big win” for putting an end to “Operation Chokepoint 2.0,” a term that refers to the alleged use of regulatory pressure by the previous administration to compel banking institutions to deny services to crypto companies.
Last month, US regulators introduced specific guidelines for banking institutions that are willing to engage in crypto custody.