U.S. Regulators Clear Banks to Enter Crypto—Game Changer for BTC?
U.S. regulatory agencies recently changed their policies enabling national bank operations within the cryptocurrency market. The Office of the Comptroller of the Currency (OCC) approved national banks to provide crypto custody services and operate with distributed ledger networks as well as offer selected stablecoin opportunities. By lifting prior restrictions this decision will affect how Bitcoin functions in the market.
OCC Removes Regulatory Barriers for Banks
The OCC indicated that national banks may conduct crypto-related operations under proper risk management standards. The announcement changes previous guidelines by eliminating the need for bank approval from regulators before crypto-related activities. Under the updated policy banks must effectively control their risks no matter what technological methods they apply.
Rodney Hood, acting comptroller, stated that the updated guidance ensures regulatory clarity. He added that banks now have the opportunity to explore crypto-related services while maintaining strong risk controls. This shift aligns with broader efforts to integrate digital assets into the financial system.
Previous Crypto Restrictions Rescinded
The new rules replace previous crypto-specific requirements from the Biden administration that increased regulatory expectations in bank-crypto transactions. Under the previous policy banks were required to contact regulators before starting digital asset business operations plus show effective risk management capabilities. The implemented restrictions compelled financial institutions to reduce their activities within the crypto market.
Additionally, the OCC decided to discontinue their participation in regulatory statements that previously warned banking institutions about cryptocurrency volatility. In 2023 the entity expressed intent to supervise crypto transactions between banks instead of issuing a full transaction ban. The elimination of these barriers brought banks enhanced flexibility to bring digital assets into their business operations.
Market Response and Bitcoin Price Movement
Following the OCC’s announcement, Bitcoin’s price is quoted at $85,794.18, reflecting a 3.74% decline in the past 24 hours. Despite this short-term dip, data suggests that most Bitcoin holders remain in profit. Around 88% of holders acquired BTC at a lower price, while 2% are at breakeven and 10% are at a loss.
Ali Charts, a crypto analyst, has identified key price levels for Bitcoin. Strong support is seen at $59,882.62, with substantial buying activity at that level. Resistance is noted at $98,081.72, where a large volume of BTC was acquired. These levels may influence trading behavior in the coming weeks.
Institutional Activity and Long-Term Holding Trends
Recent on-chain data shows that institutional investors and long-term holders continue to play a major role in Bitcoin’s market stability. Over 73% of BTC supply is held for more than one year, indicating strong confidence in the asset. Additionally, 12% of Bitcoin is controlled by large holders, reducing risks of concentrated market manipulation.
Transaction data also reflects increasing institutional involvement. In the past seven days, transactions exceeding $100,000 reached $135.82 billion, showing strong market activity. Moreover, net exchange outflows of $461.89 million suggest that more investors are transferring Bitcoin to private wallets, reducing immediate selling pressure.
The OCC’s decision to allow banks to engage in crypto activities is expected to shape the financial sector’s approach to digital assets. As banks enter the crypto space, market participants will monitor regulatory developments and Bitcoin’s price performance closely.