-
Federal Reserve lifts crypto restrictions, sparking optimism in digital asset markets
-
Bitcoin and crypto assets flash bullish signs As BTC and crypto assets strengthen, the Bitcoin whale accumulation increases
-
The FIT21 hearing scheduled for May 6 could formalize the crypto market structure in the U.S. before summer recess
This week, the crypto industry has seen a new wave of regulatory activity. Tony Edward, host and producer of the Thinking Crypto podcast, highlighted the Federal Reserve’s decision to roll back restrictive policies that limited banks’ involvement in crypto assets.
Edward said that the move would take the industry “80%” of the way to full mainstream adoption.
Fed Reverses Crypto Restrictions, Drawing Industry Applause
The Fed, together with the OCC, and FDIC, officially rescinded the guidance on Friday that discouraged banks to work with crypto firms. This move has been praised by the entire industry, given the Fed’s central position in banking oversight. Senator Tim Scott praised this move as a reversal from “harmful Biden era guidance.”
RelatedSaylor declares victory as Fed removes major hurdle between banks & Bitcoin
Senator Cynthia Lummis, however, offered a more conservative view. She acknowledged the rollback but argued that the Fed still limits crypto access through restrictions tied to master account and perceived reputation risks.
Edward, despite lingering concerns, sees the Fed’s action as a fundamental change, likely pave the way for wider reform once Congress passes pending Stablecoin bills and Market Structure Bills.
NASDAQ Proposes Four-Tier Framework for Digital Assets
In a separate regulatory development NASDAQ sent a comprehensive letter recommending a four-tier system of classification for digital assets. Edward called the move “incredibly bullish.” Proposed asset categories include:
- Financial Securities: Tokens that represent traditional assets such as stocks or ETFs.
- Digital Asset Investment Contracts Tokens that meet a modernized Howey Test.
- Digital Asset Commodities (DAC): Crypto assets such as Bitcoin and Ethereum that are defined as commodities.
- Other Digital Assets: NFTs, meme coins, and tokens outside securities/commodities classifications.
At a recent SEC Roundtable, the new Chair Paul Atkins acknowledged how past regulatory approaches had stifled innovations. He expressed a renewed commitment to building a tailored regulatory framework for crypto, working with Congress and the Trump Administration.
Bitcoin Whale Accumulation Suggests a Bullish Continue
Edward highlighted new on-chain data by Santiment, which showed a sharp increase in wallets that hold 10 or more BTC. This suggests that whales have been accumulating in anticipation of future price gains.
Bitcoin is trading above $95,000. He said that the bullish momentum remains intact. However, a pullback will likely occur soon due to overbought RSI values.
Edward advised: “Have a plan for taking your profits in place.” He said that historical trends indicate May could bring significant gains prior to a possible cooldown in June.
RelatedCoinshares : Bitcoin All-In Mine Cost Reached $137K in Q4’24 for Listed Miners
Edward also reported that Semler Scientific (a health tech company) had purchased an additional $10,000,000 in Bitcoin. This brings its total holdings up to over 3,300 BTC, worth approximately $300 million. This follows in the footsteps of firms such as Strategy (formerly MicroStrategy), and signals a continued institutional interest to use Bitcoin as a treasury asset.
Congress pushes for crypto clarity as it focuses on the FIT21 bill
Edward pointed out that a crucial hearing is scheduled for the 6th of May, where the House Financial Services and Agriculture Committees are expected to discuss an updated version FIT21 market-structure bill. President Trump has urged Congress pass both major crypto legislations before the August recess.
Related Crypto Industry Scores Major Victory as U.S. House passes FIT21 Bill
Edward said, “We want to see real progress.” “All the major agencies, which were once anti-crypto, are now working in support of it. Operation Chokepoint is dead. “The winds have changed.”
