US Banks Are Opening to Crypto: A New Chapter for DeFi

In April, the US Federal Reserve withdrew its 2022 guidance discouraging banks from crypto. This clears the way for US banks to offer crypto services without major regulatory hurdles.

This move signals growing acceptance and is likely to accelerate institutional crypto adoption, bringing more liquidity and legitimacy to the market.

For DeFi and DEXes like 1inch, it’s a double-edged sword:

Positively, it expands the crypto user base, introducing new users who may turn to decentralized alternatives for transparency and control.

On the flip side, banks bring strong competition with their brand trust and regulatory compliance.

DeFi’s strength lies in decentralization, censorship resistance, and innovative products. Improving UX/UI is key to staying ahead and attracting broader audiences.

The Federal Reserve’s move opens a new chapter — DeFi must reaffirm its core values and keep innovating to thrive in this evolving landscape.