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.

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Trump Administration Prepares to Strengthen the U.S. BTC Strategy

Ahead of the White House crypto summit, U.S. Treasury Secretary Scott Bessent and other pro-crypto cabinet members reinforced their positive stance on digital assets through media engagements.

One of Donald Trump’s key campaign promises was to establish a national BTC investment strategy. In January, President Trump signed an executive order to explore the U.S. digital asset stockpile, which many believe will include BTC.

On March 6, Trump issued a new executive order referencing a “U.S. Digital Asset Stockpile” and a “Strategic Bitcoin Reserve.” This updated directive signaled the government’s potential move toward BTC acquisitions, in contrast to previous debates following the first executive order.

U.S. Bitcoin Reserve and Criticism

According to Bitcoin Treasuries, the U.S. government currently holds 198,109 BTC, valued at approximately $18 billion. With BTC prices hovering below $90,000, the majority of these assets were seized through criminal enforcement actions.

David Sacks, the White House AI and Crypto Policy Chief, criticized previous administrations on March 6 for mismanaging America’s BTC holdings. Sacks pointed out that the government sold its BTC holdings too early, generating only $366 million over a decade, whereas holding onto them could have resulted in $17 billion.

Speaking with CNBC before Trump’s summit, Treasury Secretary Bessent emphasized that halting BTC sales and evaluating potential purchases for a national reserve is a priority.

Bessent further asserted that the U.S. must take the lead in global crypto policy and bring Bitcoin within its borders:

“I strongly believe that the U.S. should take the global lead in crypto.”

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