Bitcoin News Today: Fed Ends Special Crypto Oversight Boosts Bitcoin Banking Clarity

Michael Saylor, executive chairman of MicroStrategy Inc., has declared that “the road is now clear for Bitcoin and banking,” a statement reflecting growing institutional confidence in the digital asset. Saylor’s remarks come in response to recent regulatory shifts, including the U.S. Federal Reserve’s decision to discontinue its 2023 “novel activities supervision program,” which had previously imposed heightened scrutiny on bank engagement with crypto assets [1]. This program had been criticized as a restrictive measure limiting institutional access and was closely associated with efforts described as “Operation Chokepoint 2.0” [2]. With its termination, the regulatory environment for Bitcoin is now seen as more favorable and aligned with standard banking practices [4].

Saylor, who has been a consistent advocate for Bitcoin since MicroStrategy began its large-scale accumulation of BTC in 2020, emphasized that this marks a pivotal moment for mainstream adoption [3]. He noted that institutions now have clearer, more compliant pathways to access Bitcoin, including through exchange-traded funds, custody solutions, and on-chain settlements [2]. This shift, he argued, signals a broader acceptance of Bitcoin within traditional financial systems, where major banks are now moving from resistance to integration [5]. The Federal Reserve has stated that it will apply its lessons from the now-ended program to standard banking regulations, suggesting a more mature and integrated approach to oversight [4].

The evolving regulatory landscape is seen as a significant development for Bitcoin’s institutional future. As banks increasingly offer services related to Bitcoin—such as lending, custody, and trading—the infrastructure for large-scale adoption is being solidified [6]. Saylor’s bullish outlook is further underscored by MicroStrategy’s substantial Bitcoin holdings, which currently amount to 628,946 BTC, indicating a long-term commitment to the asset [3]. Senator Cynthia Lummis, a known supporter of digital assets, described the Fed’s decision as a “big win” for the crypto industry [6], while journalist Eleanor Terrett highlighted the move as a key step toward regulatory clarity [7].

While not all anti-crypto guidance from the Biden administration has been removed [8], the Fed’s decision marks a meaningful shift. It reflects broader policy realignments that could enable greater institutional trust and liquidity in Bitcoin. Saylor’s declaration reinforces the belief that both banks and regulators are now positioned to support broader Bitcoin adoption, potentially transforming it into a permanent fixture in global finance.

Sources:

[1] Saylor Reacts to Fed's Sudden Crypto U-Turn (U.Today, https://u.today/saylor-reacts-to-feds-sudden-crypto-u-turn)

[2] Federal Reserve Ends Special Crypto Bank Oversight (AInvest, https://www.ainvest.com/news/federal-reserve-ends-special-crypto-bank-oversight-program-2508/)

[3] Michael Saylor Bets on a $100 Billion Bitcoin 'Credit' Dream (Yahoo Finance, https://finance.yahoo.com/news/michael-saylor-bets-100-billion-133948716.html)

[4] Federal Reserve to End Program That Targeted Crypto Banking (CoinGape, https://coingape.com/federal-reserve-to-end-program-that-targeted-crypto-banking/)

[8] Bitcoin News Today: MicroStrategy Stock Falls 20% as... (AInvest, https://www.ainvest.com/news/bitcoin-news-today-microstrategy-stock-falls-20-bitcoin-etfs-redefine-market-dynamics-2508/)