ISTANBUL (AP) – Libyan rebels say money is what they need the most as they fight to topple Moammar Gadhafi.

Now it appears a new avenue has opened for them to get some funding.

The U.S. and other nations today formally recognized the opposition’s National Transitional Council as Libya’s legitimate government. That diplomatic recognition could help the rebels gain access to the Gadhafi regime’s frozen financial assets, which include some $30 billion in American banks.

The Contact Group on Libya issued a statement today saying the Gadhafi regime has lost its legitimacy and must go. The 32-nation group includes the United States, members of NATO, the European Union and the Arab League.

A rebel spokesman welcomed the recognition and called on those nations to release Libyan funds to the transitional council.

Secretary of State Hillary Rodham Clinton says recognition of the rebel council comes after U.S. officials took time to assess their intentions.

The front lines in the Libyan civil war have largely stagnated since the popular uprising against Gadhafi broke out in February. Rebels control much of the country’s east and pockets in the west, while Gadhafi controls the rest from the capital, Tripoli.