U.S. banking regulators release a blue paper, allowing lending institutions to engage in crypto assets more flexibly

U.S. banking regulators release a blue paper on loan institutions holding cryptocurrencies, providing a new roadmap for traditional banks to enter the crypto asset field.

On July 14, media reported that U.S. regulators released new guidelines to instruct banks on how to offer cryptocurrency custody services to customers without violating regulations. This move is seen as another significant development in guiding traditional finance into digital assets since the "Trump 2.0 era."

According to reports, the Federal Reserve, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency jointly issued a statement indicating that banks planning to provide crypto asset custody services must consider the evolving nature of the crypto market and its underlying technology, and establish a governance framework that can adapt to the associated risks.

The backdrop for this new guidance is that regulators withdrew previously issued risk guidelines related to the crypto industry in April of this year. At that time, the Federal Reserve also revoked a 2022 directive that required banks to report in advance before engaging in crypto asset activities.

Now, the crypto businesses of these banks will be supervised under regular regulatory processes. This move is interpreted by the market as a signal of regulatory "easing," granting banks greater autonomy in providing digital asset products and services to customers, marking a clear shift from the previously more cautious regulatory stance.

Wall Street Journal previously mentioned that market sentiment was boosted by news that the U.S. Congress would welcome "Crypto Week" and review three key bills. Bitcoin briefly surpassed $123,000 during trading on Monday, quickly retreating below $120,000 after setting a new historical record.

This dual benefit of regulation and legislation is reshaping market expectations for the crypto asset ecosystem. On one hand, industry participants believe that clear rules will bring long-term stability to the market.

On the other hand, some analysts warn that the current upward trend heavily relies on policy prospects, and any legislative setbacks could trigger a sharp market correction