- Fed Chair Jerome Powell confirmed banks can offer crypto services if done safely.
- A banker suggested Powell’s remarks imply that banks are free to engage with crypto at their own risk, subtly warning them against doing so.
- FDIC letters reveal past scrutiny of banks seeking to engage with crypto.
Federal Reserve Chair Jerome Powell reasserted that banks can offer cryptocurrency services if they control the risks. Speaking at a press conference, Powell stated banks must ensure their crypto activities stay safe given the dangers tied to digital assets.
“We’re not against innovation,” Powell said. “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.”
Regulatory Hurdles and the Crypto ‘Debanking’ Issue
Powell’s remarks come as U.S. regulators discourage banks from working with crypto firms. After a court order, the Federal Deposit Insurance Corporation (FDIC) sent letters to banks interested in crypto services, instructing them to pause operations without granting formal approval.
Related: SAB 121 Rollback Rewrites Rules for U.S. Banks a…
The post Fed Chair Powell: Are Banks Ready to Serve Crypto Customers? appeared first on Coin Edition.
Coin Edition – Read More