The Fed is launching one of the largest reductions in capital requirements for banks in the country since the 2008 financial crisis.

In this easing, the Fed proposes to allow the largest U.S. banks to use a higher leverage ratio.

Easing leverage helps banks raise capital more easily, increase assets, reduce pressure to hold capital, and expand their balance sheets.

It can create additional liquidity in the financial system, especially when combined with covert QE activities.

Result: Investors may accept higher risks, crypto bullish.