On Friday (April 25), Bitcoin rebounded to around $93,800, and the next major resistance level is $95,000. The Federal Reserve officially abolished the 2022 regulation and loosened the regulatory guidelines for banks' cryptocurrency assets and US dollar token businesses. Fox News reporter Eleanor Terrett revealed that the U.S. Congress may announce the (21st Century Financial Innovation and Technology Act) (FIT21) at the end of April.

The Federal Reserve rescinds its 2022 regulatory letter and relaxes banking industry crypto restrictions

“The Board is rescinding its 2022 supervisory letter requiring state member banks to provide advance notification of planned or current crypto-asset activities,” the Fed’s board of governors explained in a statement Thursday.

The Fed said any cryptocurrency-related activity will now be monitored through its normal regulatory processes.

The Fed will also rescind its 2023 supervisory letter that affected how state-chartered banks can participate in stablecoin activities.

The guidance initially stated that cryptocurrencies may pose risks to the safety and soundness of the U.S. financial system, consumer protection, and financial stability.

“Certain types of crypto-assets, such as stablecoins, could also pose risks to financial stability if adopted at scale, including the potential for bank runs and disruptions to payment systems.”

The Fed also noted at the time that cryptocurrencies are often used for money laundering and counter-terrorism financing.

The Federal Reserve, along with the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC), have withdrawn two statements issued in 2023 regarding banks’ interactions with crypto asset industry participants who may be involved in fraud.

“Inaccurate or misleading statements and disclosures provided by crypto asset companies ... could be unfair, deceptive, or abusive, causing significant harm to retail and institutional investors,” the agencies added in their now-withdrawn joint statement.

The withdrawal is the first major move by the Fed against cryptocurrency activity during the Trump administration, which has taken several initiatives aimed at making the U.S. more cryptocurrency-friendly and supporting innovation.

The U.S. Securities and Exchange Commission (SEC) also rescinded a controversial rule on Jan. 23 that required banks and financial firms holding cryptocurrencies to record them as liabilities on their balance sheets, removing a regulatory barrier that had hindered the adoption of cryptocurrency banking.

US media reporter: FIT21 bill may be released at the end of April

According to Eleanor Terrett, French Hill, chairman of the House Financial Services Committee, said the House "has spent much of the Easter holiday seeking technical assistance from industry, the SEC and the Commodity Futures Trading Commission (CFTC)" to improve the draft of the updated (21st Century Financial Innovation and Technology Act) market structure bill.

The post stated that "the discussion draft and hearings on the text will be released in the 'next few weeks'."

The 21st Century Financial Innovation and Technology Act, the most comprehensive digital asset bill in U.S. history, was passed by the House of Representatives in May 2024 with bipartisan support. Now, the bill is gaining momentum in the Senate.

FIT21 finally answers the question: Is this token a security or a commodity?

It created two categories: Restricted Digital Assets (RDA) are regulated by the SEC, and Digital Commodities (DC) are regulated by the CFTC. For DePIN, being classified as a digital commodity means freedom to operate and expand without legal restrictions.

FIT21 provides a way to prove that a network is a digital commodity. Projects can self-certify as decentralized networks provided they meet key conditions within a certain period of time, and the SEC has 60 days to raise objections, which subverts the power structure.

Bitcoin Technical Analysis

Several analysts said that Bitcoin’s next psychological resistance level is still at $95,000, and the price may fall to test the support level below.

Swissblock noted: “The $94,000 to $95,000 area is clearly a resistance level that needs to be broken.”

The on-chain data provider asserts that Bitcoin’s next logical move would be a pullback to the $90,000 region to gain upward momentum.

“The $89,000-90,000 area could be the next area to test the bull case, but given Bitcoin’s structural strength, these dips are worth buying.”

AlphaBTC, a well-known Bitcoin analyst, believes that the asset may consolidate in the $93,000 to $95,000 range “before pushing higher to over $100,000 with liquidity.”

Bullish signs suggest that Bitcoin could break through $95,000 in the coming days or weeks.