Emre Yumlu 
Bitcoin adoption in the United States could witness a significant acceleration after the Federal Reserve officially removed previous restrictions that discouraged banks from engaging in crypto-related activities.
On April 24, the Fed revoked its 2022 supervisory letter, which had warned financial institutions about the risks of cryptocurrencies and discouraged direct involvement in the space. This move has been widely seen as a positive shift for the broader crypto ecosystem, particularly for institutional adoption.
That now-defunct guidance had cautioned that digital assets might threaten investor safety and financial stability. However, with its withdrawal, U.S. banks are now free to offer Bitcoin-related services, paving the way for a potential flood of institutional interest.
Michael Saylor, co-founder of MicroStrategy and a vocal Bitcoin advocate, celebrated the development by stating that banks are “now free to support Bitcoin.”
Institutional Onboarding Gets a Boost
Anastasija Plotnikova, CEO of blockchain compliance firm Fideum, described the policy reversal as a major milestone for institutional involvement. She noted that crypto assets will now be monitored through standard supervisory mechanisms, aligning them more closely with traditional financial instruments.
Plotnikova also emphasized the importance of regulatory clarity through legislation. She pointed to two key bills currently under discussion in Washington — the STABLE Act and the GENIUS Act — as crucial to building a coherent regulatory environment for digital assets.
-
The STABLE Act aims to provide clear rules for USD-pegged stablecoins and passed the House Financial Services Committee on April 2 with a 32–17 vote.
-
The GENIUS Act, focused on fostering innovation for U.S. stablecoins, was approved by the Senate Banking Committee on March 13 with a vote of 18–6.
Traditional Finance Steps Into the Crypto Arena
According to Eneko Knörr, CEO of stablecoin project Stabolut, the Fed’s updated stance could serve as a turning point for institutional engagement. “The previous regulatory hostility essentially kept most major banks out of crypto,” he said.
With the restrictions lifted, Knörr expects traditional banks to act quickly in order to meet growing client demand and reclaim market share from crypto-native firms like Coinbase.
Europe Still Playing Catch-Up
While the U.S. may be opening the floodgates for institutional Bitcoin adoption, European banks remain cautious. Despite clearer regulations across the EU, less than 20% of banks in the region currently offer crypto services.
The Federal Reserve’s policy reversal not only signals a new chapter for U.S. financial institutions but also marks a notable shift in regulatory sentiment — one that could reshape the global crypto landscape in the months ahead.
You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.