The Federal Reserve has announced it is withdrawing guidance originally issued under Democratic Party president Joe Biden that deterred Wall Street banks from engaging in crypto and stablecoin activities by requiring them to get advance approval.

“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,” the board of governors of the Federal Reserve wrote in a statement.

The move sees the Fed join the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) in withdrawing their own statements that called on banks to be extra vigilant around crypto-related risks.

Under the guidance, the Fed had warned banks to be wary of volatility, legal uncertainty and liquidity risks when considering whether to provide crypto-related services or take on crypto companies as clients.

“With these restrictions now lifted state member banks can pursue crypto ventures without prior approval though such activities will still be monitored through standard supervision,” analysts with Tagus Capital wrote in an emailed note.

“This move reflects the Trump administration’s increasingly pro-crypto stance including reduced regulatory enforcement, support for a national bitcoin reserve and the appointment of a Securities and Exchange Commission (SEC) chair, Paul Atkins, known for backing digital assets.”

The move has been welcomed as a victory over the Biden era rules that had been described as a clandestine “Operation Choke Point 2.0” by some and at least led to banks backing away from crypto. One anonymous crypto banking advocate told Decrypt the Fed is “moving in the right direction.”

“Banks are now free to begin supporting bitcoin,” Strategy founder Michael Saylor, posted to X in response to the Fed’s statement.

Over the last year, following the debut of a fleet of wildly successful spot bitcoin exchange-traded funds (ETFs) on Wall Street, banks have been rushing to offer bitcoin and crypto to clients.

This week, the bitcoin ETFs recorded their best day since January, breaking their downward trend as trades go “risk on” in response to reports the U.S. and China are seeking off-ramps from the global trade war. The bitcoin price climbed as gold fell in the aftermath claims China is considering exempting some goods from U.S. tariffs.

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However, The announcement stopped short of officially changing the Fed’s policies when it comes to granting crypto-focused banks master accounts, giving members direct access to the Fed’s services.

Crypto-focused banks like Custodia and Kraken Financial have for years campaigned for master accounts with the Fed.

“Looking ahead, markets will closely monitor US administration policies and Federal Reserve actions,” Joel Kruger, Market Strategist at LMAX Group, said in emailed comments, adding the market remains closely attuned to the Fed’s interest rates, the risk of recession and the possibility of a return of quantitative easing.

“Despite signs of the president softening his trade stance, uncertainty persists about the U.S. economy’s trajectory. Pressure is mounting on the Fed to cut rates more aggressively, which could trigger broader U.S. dollar outflows.”