2025-12-18 02:20:29

Breaking: The Federal Reserve has reversed its 2023 guidance that previously barred uninsured banks from joining the Fed system and participating in crypto operations. This policy turnaround carries substantial implications for the sector.

The withdrawn guidance had been cited as the primary rationale behind the Fed's rejection of Custodia Bank's master account application—a decision that sparked intense debate within crypto and traditional finance circles. Now, with this reversal, the regulatory landscape for crypto-friendly banks seeking Fed membership appears to be shifting.

According to the latest announcement, the Fed is repositioning its approach to support "responsible" crypto engagement by banking institutions. The exact parameters of what qualifies as "responsible" remain to be clarified, but this move signals a notable softening in the Fed's institutional stance toward cryptocurrency infrastructure within the traditional banking system.

The development could reshape access routes for crypto ventures seeking deeper integration with regulated banking infrastructure.

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TestnetScholar

· 2025-12-20 23:06

Wait, has the Fed changed its stance? They previously refused to allow crypto banks to enter, and now they say they support "responsible" engagement. How exactly is "responsible" defined... Feels like they're just playing a game of taiji.

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AirdropChaser

· 2025-12-18 02:50

The Fed's recent counter-move feels like it's being driven along by the market.

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DeFiGrayling

· 2025-12-18 02:49

Honestly, this turn of events is a bit sudden. Previously, Custodia was kept out, and now they're starting to loosen up... The Fed's move looks a bit awkward. Wait, what does "responsible" mean? That word is so empty, it feels like they're about to start playing word games again. By the way, can this on-chain ecosystem really help? I always feel like there are still all kinds of rules and restrictions. Is this really a genuine shift, or are they going to tinker around again? So, was Custodia wrongfully accused back then? Maybe not, haha. Are the banks about to start getting restless again... but I still don't quite believe it. It seems like the word "responsible" is the biggest trap. Let me guess, how much longer will we have to tinker with this? Honestly, it looks like the Federal Reserve has finally realized something, but at this speed... It's another "clarification of rules," isn't that just code words? Still waiting. What’s the use of just verbally loosening up? It depends on how many can actually get in.

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