Fed Chair Powell Confirms Banks Can Serve Crypto Clients

Federal Reserve Chair Jerome Powell made a big statement today. He said the Fed will not stop banks from serving crypto customers. Banks can work with crypto businesses without any problems. Powell confirmed that the Fed will not block crypto banking. Instead, it allows banks to serve legal crypto customers.

Powell spoke at Capitol Hill today. This was his second day giving updates on the economy. He answered many questions about cryptocurrency. His response showed clear support for crypto in banking. Two weeks ago, he said banks can serve crypto customers freely. Today, he repeated that message strongly.

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Powell’s latest statement is a big step for crypto in the U.S. His words signal trust in crypto banking. This support may help crypto grow in the financial system.

Fed Chair Powell Reaffirms: Banks Can Serve Crypto Customers

In December 2024, Jerome Powell made a clear statement. He said the US central bank does not want to stockpile crypto. “We’re not allowed to own Bitcoin,” he confirmed. The Fed will not collect large amounts of digital assets.

However, Donald Trump had a different plan. One of his first executive orders created a digital asset stockpile. This stockpile will likely include Bitcoin. The government is now taking steps to hold crypto. Now, Powell is more careful about banks handling crypto. He wants banks to manage risks properly. In January, he made this clear. 

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“Banks can serve crypto customers,” he said. “But they must ensure safety.” If a bank handles crypto, it must protect customers. Powell believes safety is key. He wants banks to be responsible for digital assets.

The crypto industry is watching the Federal Reserve closely. The Fed must decide whether to cut interest rates in early 2025. In 2024, the Fed cut rates multiple times for the first time in years. Many see rate cuts as a sign of economic improvement. Lower inflation means the US is winning the battle.

Fed Chair Jerome Powell is in no rush to cut rates. However, new reports show inflation rose 3%. This increase may affect the Fed’s decision. The market is waiting for the final call.

The Fed’s decision to allow banks to handle crypto is good news. Banks can now serve crypto customers. The Fed still supervises banks, but it gives them more control. This change is a big step for crypto compared to previous years.