The cryptocurrency sector welcomes "deregulation" benefits! U.S. banking regulators withdraw cryptocurrency regulatory guidelines

According to Zhitong Finance APP, U.S. banking regulators announced on Thursday that they have withdrawn several documents urging banks to exercise caution when engaging in cryptocurrency and related activities.

The Federal Reserve stated that it is rescinding two regulatory letters that required banks to obtain approval from regulators before engaging in activities involving crypto assets and stablecoins.

Additionally, the Federal Reserve joined the ranks of the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency in withdrawing two statements from 2023 that urged banks to remain vigilant regarding risks associated with cryptocurrencies.

According to previous guidance, regulators warned banks to be cautious of volatility, legal uncertainty, and liquidity risks when considering whether to offer crypto-related services or accept cryptocurrency companies as clients.

The withdrawal of this guidance marks the latest move by the Trump administration to adopt a more favorable stance towards cryptocurrencies. In a statement announcing these changes, the Federal Reserve indicated that regulators will investigate whether new guidance "supports innovation, including activities related to crypto assets."

In March of this year, the Office of the Comptroller of the Currency became the first regulatory agency to take action to relax banks' participation in cryptocurrency activities, while also abolishing the previous U.S. government's guidelines urging banks to remain cautious in the crypto space.

As of the time of publication, Bitcoin has risen slightly by 0.5%, trading at $93,589