The post Crypto Banking Gets Green Light From Fed Chair Jerome Powell appeared on BitcoinEthereumNews.com.

Federal Reserve Chair Jerome Powell delivered remarks yesterday suggesting that US banks can freely engage with crypto clients—provided they understand and manage the inherent risks. Powell’s comments came during the Federal Open Market Committee (FOMC) press conference, where he addressed queries about the Fed’s stance on crypto banking. “Banks are perfectly able to serve crypto customers as long as they understand and can manage the risks,” Powell said. “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 excess risk aversion may be related to regulation and supervision.” Positive Reactions From Crypto Industry Within hours, key figures in the community offered widespread praise for Powell’s statement, interpreting it as a green light for banks that have been hesitant to embrace crypto services. Nic Carter, a partner at Castle Island Ventures and co-founder of blockchain data aggregator Coinmetrics.io, commented via X, “Immense tonal shift. OCP2.0 over. this is particularly notable because my understanding is the Fed specifically was the nexus of OCP2.0.” This sentiment was echoed by Hunter Horsley, CEO of Bitwise Asset Management, who tweeted, “Banks will be a major catalyst for crypto in 2025. Mainstream era beginning.” Meanwhile, David Lawant, head of research at FalconX, remarked, “Massive wave incoming over next 6-18 months. Most aren’t aware of the scale of it.” Joe Consorti, head of growth at They, underscored the potential breadth of bank offerings: “Banks can custody bitcoin on behalf of clients, create structured bitcoin financial products, and allow customers to buy bitcoin. Even Powell isn’t badmouthing it anymore. Vibe shift.” Bitcoin analyst Dylan LeClair also signaled the convergence of regulatory and market forces, stating, “FASB + repeal of SAB 121 + In-Kind redemptions for ETFs. Banks are here.” Powell’s comments arrive at…

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Filed under: News - @ January 30, 2025 1:25 pm