US Fed withdraws guideline restricting some banks from crypto business

The U.S. Federal Reserve has decided to officially withdraw a guideline that had restricted some banks from engaging in cryptocurrency business, reported Eleanor Terrett, host of Crypto in America. The guideline primarily limited market entry for banks not covered by Federal Deposit Insurance Corporation (FDIC) deposit insurance. The Fed had previously cited this guideline as the basis for denying a master account application from the crypto-focused Custodia Bank. In a statement, Michelle Bowman, the Fed's Vice Chair for Supervision, explained that new technologies can enhance bank efficiency and provide better products and services to customers. She added that by establishing a path for responsible and innovative offerings, the Board is helping the banking system operate efficiently while remaining safe and sound.