Fed seeks feedback on proposal critics say could end Operation Chokepoint 2.0

💡 DMK Insight

The Fed’s proposal to tackle crypto debanking is a game changer for traders. This move comes at a time when regulatory scrutiny is intensifying, and it could significantly impact liquidity in the crypto markets. If the Fed addresses these concerns effectively, we might see a resurgence in institutional interest, which has been tepid due to fears of sudden account closures. Traders should keep an eye on how this feedback period unfolds over the next 60 days, as it could lead to clearer guidelines that stabilize the market. On the flip side, if the feedback reveals deep divisions or resistance, it could exacerbate volatility in crypto assets as uncertainty lingers. Watch for price reactions in major cryptocurrencies like Bitcoin and Ethereum, especially around key support and resistance levels. The next few weeks will be critical, so stay tuned for any updates from the Fed that could shift market sentiment dramatically.