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Crypto News: Federal Reserve Steps Back From Anti-Crypto Policy As Global Risks Rise


by Rahul Nambiampurath
for The Coin Republic

Share:

us federal reserve crypto news stance

Key Insights:

  • Crypto news shows the Federal Reserve easing pressure on banks working with crypto firms, signaling a policy shift.
  • The policy change improves bank access for crypto companies but does not remove market volatility.
  • Global risks from Japan and Canada continue to limit upside even as U.S. regulatory pressure softens.

In the latest crypto news, the market received a quiet but important bullish hint from the United States this week. The Federal Reserve has stepped back from a rule that made it hard for banks to work with crypto companies.

Yet, this move does not mean crypto is fully accepted. But it does show a clear change in tone.

At the same time, global risks are still building. Bitcoin prices are swinging fast. Other central banks are tightening rules.

This creates a mixed picture for crypto markets right now. This crypto news matters because it changes how banks, traders, and regulators may act next.

Crypto News: Fed Stepping Back From Its Anti-Crypto Stance

The Federal Reserve has withdrawn its 2023 guidance that limited how uninsured banks could work with crypto firms. That guidance played a big role in keeping many banks away from crypto activity.

In simple terms, the rule made banks scared to touch crypto. Many digital asset-focused firms lost access to basic banking services.

This period became known as Operation Chokepoint 2.0. It was not an official program name, but the crypto industry used it to describe how rules quietly pushed crypto out of the banking system.

By removing this guidance, the Fed is easing that pressure. Banks supervised by the Fed now have more freedom to work with crypto firms, as long as risks are managed properly.

Crypto News: Fed Eases Crypto Stance | Source: Eleanor Terrett, X
Crypto News: Fed Eases Crypto Stance | Source: Eleanor Terrett, X

This does not mean banks will rush in tomorrow. The  softened policy means that there could be fewer adoption roadblocks.

This shift also signals that US regulators may be moving away from blanket restrictions and toward clearer rules.

Markets Stay Volatile Despite Relief

Even with better policy news, crypto markets remain unstable. Bitcoin showed this clearly. Prices jumped by more than $3,000 in one hour as over $120 million in short positions were wiped out.

Soon after, prices fell again as around $200 million in long positions were liquidated. In less than two hours, the market saw a swing of about $140 billion in value.

This tells a simple story. Too much leverage is still in the system. Leverage means traders are borrowing money to trade bigger positions.

When prices move fast, these positions get forced closed, causing sharp moves up and down. The US Federal Reserve easing its stance does not fix this problem.

It helps long-term structure, but short-term trading remains risky. This gap between better rules and unstable markets is important. It shows why crypto prices can still move sharply even when the news sounds positive.

Not All Banks Bring Good Crypto News!

While the Fed is turning accommodative, other central banks are moving in different directions.

The Bank of Japan has confirmed plans to raise interest rates. Higher rates often pull money away from risky assets like crypto. This adds pressure at a global level.

Canada also brings a new dimension to the crypto narrative. The central bank said that it will only approve high-quality stablecoins.

These stablecoins must be backed one-to-one with cash or safe assets like government bonds. This makes rules clearer, but also tighter.

At the same time, debates continue around big Bitcoin buyers. Critics like Peter Schiff argue that some companies buy Bitcoin to support the asset rather than maximize shareholder value. These debates show that confidence is still split.

The Federal Reserve stepping back from its anti-crypto guidance is a real change. It reduces banking pressure and signals a softer regulatory approach in the US.

But this does not remove risk from the market. High leverage, global rate changes, and strict rules in other countries keep volatility high.

For crypto, this is a transition phase. The doors are opening slowly, but the ground is still unstable. For now, this crypto news is a step forward for long-term adoption, even as short-term risks linger.

The post Crypto News: Federal Reserve Steps Back From Anti-Crypto Policy As Global Risks Rise appeared first on The Coin Republic.

Read the article at The Coin Republic

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Crypto News: Federal Reserve Steps Back From Anti-Crypto Policy As Global Risks Rise


by Rahul Nambiampurath
for The Coin Republic

Share:

us federal reserve crypto news stance

Key Insights:

  • Crypto news shows the Federal Reserve easing pressure on banks working with crypto firms, signaling a policy shift.
  • The policy change improves bank access for crypto companies but does not remove market volatility.
  • Global risks from Japan and Canada continue to limit upside even as U.S. regulatory pressure softens.

In the latest crypto news, the market received a quiet but important bullish hint from the United States this week. The Federal Reserve has stepped back from a rule that made it hard for banks to work with crypto companies.

Yet, this move does not mean crypto is fully accepted. But it does show a clear change in tone.

At the same time, global risks are still building. Bitcoin prices are swinging fast. Other central banks are tightening rules.

This creates a mixed picture for crypto markets right now. This crypto news matters because it changes how banks, traders, and regulators may act next.

Crypto News: Fed Stepping Back From Its Anti-Crypto Stance

The Federal Reserve has withdrawn its 2023 guidance that limited how uninsured banks could work with crypto firms. That guidance played a big role in keeping many banks away from crypto activity.

In simple terms, the rule made banks scared to touch crypto. Many digital asset-focused firms lost access to basic banking services.

This period became known as Operation Chokepoint 2.0. It was not an official program name, but the crypto industry used it to describe how rules quietly pushed crypto out of the banking system.

By removing this guidance, the Fed is easing that pressure. Banks supervised by the Fed now have more freedom to work with crypto firms, as long as risks are managed properly.

Crypto News: Fed Eases Crypto Stance | Source: Eleanor Terrett, X
Crypto News: Fed Eases Crypto Stance | Source: Eleanor Terrett, X

This does not mean banks will rush in tomorrow. The  softened policy means that there could be fewer adoption roadblocks.

This shift also signals that US regulators may be moving away from blanket restrictions and toward clearer rules.

Markets Stay Volatile Despite Relief

Even with better policy news, crypto markets remain unstable. Bitcoin showed this clearly. Prices jumped by more than $3,000 in one hour as over $120 million in short positions were wiped out.

Soon after, prices fell again as around $200 million in long positions were liquidated. In less than two hours, the market saw a swing of about $140 billion in value.

This tells a simple story. Too much leverage is still in the system. Leverage means traders are borrowing money to trade bigger positions.

When prices move fast, these positions get forced closed, causing sharp moves up and down. The US Federal Reserve easing its stance does not fix this problem.

It helps long-term structure, but short-term trading remains risky. This gap between better rules and unstable markets is important. It shows why crypto prices can still move sharply even when the news sounds positive.

Not All Banks Bring Good Crypto News!

While the Fed is turning accommodative, other central banks are moving in different directions.

The Bank of Japan has confirmed plans to raise interest rates. Higher rates often pull money away from risky assets like crypto. This adds pressure at a global level.

Canada also brings a new dimension to the crypto narrative. The central bank said that it will only approve high-quality stablecoins.

These stablecoins must be backed one-to-one with cash or safe assets like government bonds. This makes rules clearer, but also tighter.

At the same time, debates continue around big Bitcoin buyers. Critics like Peter Schiff argue that some companies buy Bitcoin to support the asset rather than maximize shareholder value. These debates show that confidence is still split.

The Federal Reserve stepping back from its anti-crypto guidance is a real change. It reduces banking pressure and signals a softer regulatory approach in the US.

But this does not remove risk from the market. High leverage, global rate changes, and strict rules in other countries keep volatility high.

For crypto, this is a transition phase. The doors are opening slowly, but the ground is still unstable. For now, this crypto news is a step forward for long-term adoption, even as short-term risks linger.

The post Crypto News: Federal Reserve Steps Back From Anti-Crypto Policy As Global Risks Rise appeared first on The Coin Republic.

Read the article at The Coin Republic

In This News

Share:

In This News

Share:

Read More

Crypto Market Crash: Here’s Why the Crypto Prices Are Going Down Today

Crypto Market Crash: Here’s Why the Crypto Prices Are Going Down Today

Key Insights: The crypto market lost almost 3.7% in the last 24 hours. This was not d...
SOL maintains strength against BTC: A Resilient Signal for Crypto Investors

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BitcoinWorld SOL maintains strength against BTC: A Resilient Signal for Crypto Inves...