Crypto Trading: New US Policies Set To Hype Activities

Ambitious investors can now explore more with crypto currency trading following the relaxation of regulatory restraints placed on commercial banks before now.

The latest development is by way of The Federal Reserve withdrawing two supervisory letters that required banks to seek prior approval from regulators before participating in crypto-asset and stablecoin operations.

It has already secured the understanding of the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC), reports say.

They would be scrapping a pair of 2023 statements that had advised banks to be vigilant about the risks tied to crypto currencies.

Under the previous guidance, regulators had cautioned banks about potential volatility, legal uncertainties, and liquidity risks associated with providing crypto-related services or banking crypto firms.

Eliminating those warnings marks another step by the Trump administration toward creating a more crypto-friendly regulatory environment.

In its announcement, the Fed stated that regulators are now evaluating whether new guidance is needed to “support innovation, including crypto-asset activities.”

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The OCC had already taken a similar step in March, becoming the first U.S. regulator to dismantle cautionary guidance introduced under the prior administration, making it easier for banks to enter the crypto space.

Optimisms of a crypto currency trading boom in the Washington is predicated on a number of recent developments.

For example, earlier in 2020, the U.S. Treasury Department had indicated its readiness to take a more aggressive stance in dealing with crypto currencies to reduce financial crime.

The move it added, would also help to enthrone transparency to an otherwise complicated asset class.

Our check also, shows that a Financial Innovation and Technology for the 21st Century Act (or FIT21), has already been passed by the U.S. House of Representatives, awaiting enforcement. That also is expected to bolster confidence in crypto currency trading.