The U.S. Federal Reserve has made a significant change to its banking policy by withdrawing measures that specifically targeted the cryptocurrency sector. This revision aims to distance regulations previously known as “Operation Choke Point 2.0,” which state-licensed crypto banks considered restrictive to their operations. In recent years, U.S. financial institutions have imposed stringent oversight and restrictions on cryptocurrencies and related banking services to safeguard the financial system from illicit activities and protect consumer interests. However, these policies limited the ability of crypto banks to operate fully and access banking facilities. The Federal Reserve’s recent policy shift offers renewed hope for the cryptocurrency industry to establish stronger ties with the traditional financial system. This move could enhance investment and growth opportunities in crypto banking and provide consumers with improved financial services. Cryptocurrencies, being digital or virtual currencies secured through cryptography and lacking central control by banks or governments, have seen global growth in popularity and usage. Consequently, various countries are adjusting their financial policies to address their impact. While the Federal Reserve’s new policy is welcomed by the crypto sector, experts emphasize the need for continued vigilance against potential financial risks and illicit activities to maintain market stability and transparency.
Source: decrypt
