Federal Reserve Allows Banks to Engage with Cryptocurrencies

The Federal Reserve has lifted restrictions on banks regarding cryptocurrencies, allowing them to:

Issue, hold, and transfer crypto assets
Engage in crypto services with prior notification to regulators
Implement strong compliance systems for risk management

Banks must manage risks related to market volatility and cybersecurity. This decision responds to demands for updated regulations from the financial sector.

Increased crypto adoption by banks is anticipated, but actions will be monitored closely to ensure public trust and financial stability remain priorities.