Federal Reserve Chair Jerome Powell calls for a stronger regulatory framework while affirming that banks can serve crypto customers if risks are managed.
Fed Chair on Crypto Regulations
Federal Reserve Chair Jerome Powell has urged Congress to establish a comprehensive regulatory framework for crypto, citing potential risks to households.
“We’re not against innovation, and we certainly don’t want to take actions that would cause banks to terminate customers who are perfectly legal just because of excess risk aversion, maybe related to regulation and supervision.”
Banks Can Engage in Crypto—With Caution
Powell emphasized that banks are “perfectly able to serve crypto customers” if they adhere to risk management protocols supervised by the Fed.
“I do think it would be helpful if there were a greater regulatory apparatus around crypto, and I think that’s something that Congress was working on quite a lot. We’ve actually spent a lot of time with members of Congress working together with them on various things, and I think that would be a very constructive thing for Congress to do.”
Stablecoins and Financial Stability
Powell addressed concerns from a Financial Services Oversight Council report warning that stablecoins could pose risks to financial stability.
Bitcoin Responds to Fed Decision
Following the Fed’s decision to keep interest rates unchanged, Bitcoin briefly surged above $104,000, reacting to Powell’s remarks.
Disclaimer:
The information provided on 13Desk is for informational purposes only and should not be considered financial advice. We strongly recommend conducting your own research and consulting with a qualified financial advisor before making any investment decisions. Investing in cryptocurrencies carries risks, and you should only invest what you can afford to lose. 13Desk is not responsible for any financial losses incurred from your investment activities.
