In a major policy shift, the U.S. Federal Reserve has removed key regulatory hurdles previously restricting banks from engaging in cryptocurrency and stablecoin-related activities. The change marks a departure from the Fed’s previous cautious approach towards digital assets, as it now allows banks to participate in crypto markets with less stringent oversight. [Insert relevant paragraph on the new regulatory regime here] This move signifies a significant boost for the crypto industry, potentially accelerating institutional adoption and easing compliance burdens for financial institutions. The U.S. Federal Reserve has joined forces with the FDIC and OCC to withdraw previously issued statements highlighting concerns about the volatility and lack of consumer protections in the cryptocurrency space. This transition aligns with similar regulatory changes, such as the SEC’s rollback of reporting requirements for banks holding cryptocurrencies. Federal Reserve Governor Christopher Waller also advocates for a more nuanced regulatory framework that allows for stablecoin issuance by both banks and non-banks, citing their potential to bolster global currency influence.