The United States' banking regulatory bodies have jointly unveiled a blueprint, offering fresh guidelines to pave the way for traditional banks to navigate the realm of crypto assets. The Federal Reserve, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency now mandate that banks establish a risk-responsive governance framework when offering cryptocurrency custody services. This integration of crypto-related activities into conventional regulatory frameworks signifies a shift towards regulatory leniency, and eliminates the need for banks to pre-report their involvement in crypto businesses. The market perceives this development, coupled with three pending crypto-focused legislative proposals, as a collective boost to industry sentiment, pushing Bitcoin prices above the $120,000 mark. Nonetheless, analysts caution that market gains are contingent upon policy outlooks, and legislative shifts could potentially trigger market corrections.