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MSTR's Michael Saylor Says Banks Are 'Free' To Support Bitcoin As Federal Reserve Withdraws Crypto Guidance

BY Benzinga | ECONOMIC | 04/25/25 05:27 AM EDT

The Federal Reserve revoked its guidance for banks that required them to inform the regulator before engaging in any cryptocurrency-related activity on Thursday.

What Happened: The Fed retracted its 2022 supervisory letter that mandated banks to notify in advance about their cryptocurrency endeavors, among other risk management practices and compliance controls, according to a press release.

The central bank said it no longer expects such notifications and will instead monitor banks’ cryptocurrency activities through the regular supervisory process.

See Also: Peanut The Squirrel’s Death Triggered Outcry And Spawned A $2 Bllion Memecoin, But Was It A Planned Outcome?

The Fed also pulled back its 2023 supervisory letter related to the banks’ engagement with dollar-backed stablecoins.

“The Board intends to work with the agencies to evaluate if there is a need for additional guidance to promote innovation, including crypto-asset activities,” a statement read.

Cryptocurrency mogul and Strategy co-founder Michael Saylor cheered the announcement, stating, “Banks are now free to begin supporting Bitcoin.”

Why It Matters: This decision comes on the heels of Fed Chair Jerome Powell’s statement earlier this month indicating a potential relaxation of certain cryptocurrency and banking regulations.

Powell acknowledged the increasing mainstream acceptance of cryptocurrencies and emphasized the need for a clear regulatory framework, especially around stablecoins.

The Trump administration has been vocal about its support for the cryptocurrency industry, instituting a dedicated SEC crypto task force, repealing an accounting directive that prohibited banking institutions from providing custodial services for digital assets, and establishing a Strategic Bitcoin (CRYPTO: BTC) Reserve.

Read Next: 

  • If Bitcoin Breaks $100K, This CEO Will ‘Gladly Admit’ Being Wrong About A Bear Market

Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

Photo Courtesy: Bukhta Yurii on Shutterstock.com

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