The Federal Reserve Ebnet Banks the way into the cryptoma market
In a significant political U-turn, the US Federal Reserve has tacitly painted the risk of reputation as a factor when evaluating banks. This step could make it easier for financial institutions to offer cryptocurrency services without fear of regulatory counter reactions.
The central bank announced knownthat they will no longer include “reputation and reputation risks” in their guidelines for banking tests. Instead, the focus is shifted on more specific financial risk reviews. With this change, the Fed joins the Office of the Compotroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC), both of which have given up reputation criteria in recent years.
This step goes back to a long-term criticism of crypto supporters and legislators such as Senator Cynthia Lummis, who argued that vague reputation concerns were used as a means to prevent banks from working with companies from the field of digital assets. Now that this hurdle has been removed, there could be a wave of crypto integration in the financial sector.
The Fed plans to re -train its examiners based on the updated criteria and indicated a coordination with other federal authorities to ensure a uniform implementation.
The update of the guidelines had an immediate impact on the markets. Bitcoin rose by over 5% within a few hours after the message was announced, while Ethereum increased by 10% and approached the $ 2,500 mark. Other important tokens, including Solana, Cardano and XRP, also recorded strong profits. The global market capitalization for cryptocurrencies rose to $ 3.3 trillions and quickly recovered from a strong slump only a day earlier, which had been triggered by the US military campaign in the Middle East.
This change in the regulatory course comes at a time when the US Federal Reserve signals a possible interest rate reduction in July. In view of the improving market mood, investors are now relying on the fact that traditional financial actors finally get the green light for the introduction of crypto services and thus may be heralding a new era of institutional participation in digital assets.
