The US Federal Reserve's recent decision to withdraw guidance discouraging banks from engaging in cryptocurrency activities marks a pivotal shift for Bitcoin adoption among financial institutions. This change, announced on April 24, 2025, signifies that banks can now support Bitcoin, potentially boosting institutional participation. The Federal Reserve’s previous guidance had warned about the risks of cryptocurrencies to investors and financial stability. Michael Saylor, co-founder of a major corporate Bitcoin holding firm, emphasized that this development simplifies the path for banks to engage with Bitcoin. Experts believe the Fed’s decision represents a significant turning point, prompting traditional banks to respond swiftly to client demand and regain market share from crypto-native firms. The article also highlights the necessity for additional legislative measures, like the STABLE and GENIUS Acts, to further facilitate and harmonize crypto activities among firms regulated by the Federal Reserve, ultimately supporting stronger institutional adoption of cryptocurrencies.

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