Bitcoin adoption among US financial institutions may see a significant increase after the US Federal Reserve retracted guidance that had discouraged banks from engaging with cryptocurrency. The April 24 withdrawal indicated a new openness, with Michael Saylor, co-founder of a major corporate Bitcoin holding firm, stating that banks are now free to support Bitcoin. This development is expected to simplify the path for institutional adoption, according to blockchain regulatory firm co-founder Anastasija Plotnikova. She emphasized the need for further legislative efforts, specifically the GENIUS and STABLE Acts, to create clearer regulatory frameworks. The Fed’s move is seen as a pivotal moment that could encourage traditional financial institutions to participate in the cryptocurrency market, enhancing competition against crypto-native firms. Eneko Knörr from Stabolut noted that the previous regulatory hostility had hindered participation, but now banks may quickly respond to client demand for cryptocurrency services.

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