Michael Barr, the head of the central bank's regulatory division, emphasized that the Federal Reserve is currently in the preliminary research stage and would require official legislation from Congress to formalize any action.
The recent crypto guidance released by the U.S. central bank maintains continuity with past policies, while furnishing greater insight into the Federal Reserve's anticipations from financial institutions.
Some contend that it might undermine the payments utility of cryptocurrencies or serve as a pathway to a digital dollar.
The options market exhibits a preference for bitcoin-related put options in anticipation of the crucial Federal Reserve meeting.
Analysts suggest that the recent boost in risk assets, including cryptocurrencies, due to improved liquidity conditions this year is likely to reverse once the U.S. debt ceiling is lifted and the Treasury, along with the Federal Reserve, resumes their tightening measures.
Investors were eagerly anticipating the House vote on the debt limit deal, which was set to take place on Wednesday.
The Federal Open Market Committee's recent meeting left the markets confused due to ambiguous messaging, leaving them struggling to interpret the signals conveyed by both the FOMC statement and Chair Jerome Powell's comments. This is a common occurrence in central bank policy-setting, which often involves abstruse signals. However, the emergence of new tools like blockchain's cryptographic verification systems could potentially aid policymakers in making more informed decisions.
According to a recent report from the firm, it has been stated that the prolonged bear market in cryptocurrency has come to an end, and the upcoming bitcoin halving event is expected to have a positive impact on the price.
On Thursday, Bitcoin miners suffered the most significant impact.
One analyst found it challenging to identify the exact cause of the hour-long surge, but there has been a recent boost in investor confidence regarding the cryptocurrency's future prospects since the banking crisis of last month.