The US Federal Reserve has announced that it is withdrawing guidance served to deter banks from engaging in crypto and Stablecoin activities.
A statement by the Board of Governors of the Federal Reserve on April 24, 2025 said, “The Board is rescinding its 2022 supervisory letter establishing an expectation that state member banks provide advance notification of planned or current crypto-asset activities.”
It said that any crypto-related activities will now be monitored through the Federal Reserve’s normal supervisory process.
According to Cointelegraph, the guidance initially flagged that crypto may pose risks related to safety and soundness, consumer protection and financial stability of the American financial system. “Certain types of crypto-assets, such as Stablecoins, if adopted at large scale, could also pose risks to financial stability including potentially through destabilizing runs and disruptions in the payment systems,” it added.
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US SEC Delays Decision On Polkadot ETF
The US Securities and Exchange Commission (SEC) has delayed its decision on to whether to approve a proposed exchange-traded fund (ETF) holding Polkadot’s native token, according to regulatory filings.
Now, the SEC has extended the deadline for the final ruling till June 11, 2025. It is nearly four months after Nasdaq sought permission to list Grayscale Polkadot Trust on February 24, 2024.
According to Bloomberg Intelligence, the Grayscale’s ETF filing adds to a roster of roughly 70 proposed ETFs awaiting SEC approval, including funds holding altcoins, meme coins, and crypto-related financial derivatives.
Crypto Firms Launch Wall Street-Style Funds
For bridging the gap between the traditional financial and digital assets, cryptocurrency firms and centralised exchanges are launching more traditional investment offerings.
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Gracy Chen, the CEO of Bitget, the world’s sixth-largest crypto exchange, said that with investors seeking more flexible product offerings under one platform, the “line is blurring” between traditional finance (TradFi) and the cryptocurrency space, as the two financial paradigms signal a “growing synergy.”
According to Cointelegrph, in the wider crypto space, Securitize partnered with Mantle protocol to launch an institutional fund that will generate yield on a basket of diverse cryptocurrencies, similar to how traditional index funds track a mix of stocks. The developments come after crypto investor sentiment staged a significant recovery, moving from “fear” to “neutral” for the first time since January 2025.
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Investor sentiment was boosted after US President Donald Trump said that import tariffs on Chinese goods will “come down substantially,” adopting a softer tone in negotiations for the first time since the reciprocal tariff announcement.
