US Banks Free to Engage with Bitcoin as Fed Withdraws Guidance

The US Federal Reserve has removed its guidance discouraging banks from working with cryptocurrencies, a move that could significantly boost Bitcoin adoption among financial institutions. The Fed’s decision comes after it withdrew its 2022 supervisory letter that discouraged such activities. This change sparked optimism and boosted investor sentiment for Bitcoin (BTC). Experts attribute this rise to the expanding DeFi applications and increased institutional investment in cryptocurrencies.