The Fed's update marks a strategic step forward: it recognizes Bitcoin and digital assets as an integral part of the financial system.

According to Odaily, the Federal Reserve has announced the withdrawal of regulatory guidance concerning banks' crypto assets and dollar token operations, alongside updates to related business expectation standards. Analysts suggest that this move signifies a broader legitimization of Bitcoin in the eyes of regulatory bodies, extending beyond mere banking policies. This development is expected to aid the Federal Reserve in accelerating its vision of creating a financial environment where Bitcoin is as accessible and secure as traditional fiat currency. Consequently, Bitcoin checking accounts, crypto-backed loans, and the conversion between cryptocurrencies and fiat currencies may be integrated into traditional banking services sooner than anticipated.