The Federal Reserve has revised its crypto asset oversight policy, eliminating prior notification requirements for banks engaging in crypto activities. Announced by Vice Chairman Michael Barr, the change aims to streamline regulation and facilitate the integration of digital assets into traditional banking systems. This new framework allows banks to participate in crypto-related activities through standard supervisory processes, potentially leading to the development of new financial products and custody services. The policy shift is expected to foster innovation in the crypto sector, benefiting major cryptocurrencies such as Bitcoin and Ethereum.