Written by: Bao Yilong, Wall Street Insight
U.S. banking regulators have issued a blue paper on lending institutions holding cryptocurrencies, providing a new roadmap for traditional banks to enter the crypto asset field.
According to media reports on July 14, U.S. regulators released new guidelines guiding banks on how to provide cryptocurrency custody services for clients without violating regulations. This move is seen as another important development by regulators on how to guide traditional finance into digital assets since the "Trump 2.0 era".
According to reports, the Federal Reserve, Federal Deposit Insurance Corporation, and Office of the Comptroller of the Currency jointly issued a statement, indicating that banks planning to provide crypto asset custody services must consider the evolving characteristics of the crypto market and underlying technology, and establish a governance framework that can adapt to related risks.
The background of this new guideline is that regulators withdrew the previously issued risk guidelines for the crypto industry in April this year. At the time, the Federal Reserve also abolished a 2022 directive that had required banks to report in advance before conducting crypto asset activities.
Now, these banks' crypto businesses will be supervised through routine regulatory processes. This move is interpreted by the market as a signal of regulatory "loosening", giving banks greater autonomy in providing digital asset products and services to clients, and representing a clear shift from the previously more cautious regulatory stance.
Wall Street Insight previously mentioned that market sentiment was boosted by the news that the U.S. Congress will welcome a "crypto week" and review three key bills. Bitcoin briefly broke through $123,000 on Monday, refreshing its historical record before quickly falling back below $120,000.
This dual benefit of regulation and legislation is reshaping market expectations for the crypto asset ecosystem. On one hand, industry participants believe that clear rules will bring long-term stability to the market.
On the other hand, some analysts warn that the current upward trend is highly dependent on policy prospects, and any legislative twists could trigger a sharp market correction.
