The post Jerome Powell Suggests Banks May Embrace Cryptocurrency Amid Regulatory Changes and Bitcoin’s Rising Interest appeared on BitcoinEthereumNews.com.

Federal Reserve Chair Jerome Powell has opened the door for banks to serve cryptocurrency customers, emphasizing the importance of risk management. The repeal of SEC’s SAB 121 allows banks to custody digital assets, marking a significant shift in the integration of crypto and traditional finance. Despite positive signals from Powell, some banks remain hesitant due to ongoing regulatory uncertainties, particularly concerning customer safety. This article explores recent comments from Fed Chair Jerome Powell regarding banks’ ability to serve cryptocurrency clients amid new SEC regulations. Fed Chair Socrates Crypto Customer Service During a recent press conference, Chair Jerome Powell underscored that banks are fully entitled to provide services to cryptocurrency customers, provided they effectively navigate the inherent challenges and risks associated with digital assets. His remarks came in conjunction with the Federal Reserve’s decision to keep interest rates steady, reinforcing the stability of the financial environment. Powell stated, “Banks are perfectly able to serve crypto customers as long as they understand and can manage the risks and it’s safe.” This perspective reflects a growing recognition within the Fed of the importance of integrating cryptocurrency within the financial services landscape. The Securities and Exchange Commission (SEC) has recently taken a significant step by repealing Staff Accounting Bulletin (SAB) 121. This regulation had previously discouraged banks from offering cryptocurrency custody services due to stringent accounting requirements. The new guidelines under SAB 122 enable banks to more seamlessly participate in the digital asset ecosystem. In his remarks, Powell made it clear that the Federal Reserve supervises several banks already venturing into the world of cryptocurrencies. However, he acknowledged that the regulatory environment remains a substantial obstacle to broader engagement in this sector. He reminded stakeholders of the critical importance of robust risk management practices, particularly when dealing with assets that involve higher volatility. The…

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Filed under: News - @ January 30, 2025 10:29 am