In a press conference, Federal Reserve Chair Jerome Powell said that now U.S. banks can work with crypto customers under the condition that they manage the risks properly. It was a big boost to the cryptocurrency world. These comments made in the most recent Federal Open Market Committee (FOMC) press conference are a massive development for the banking sector and the future of digital assets.
JUST IN: 🇺🇸 Federal Reserve Chair Jerome Powell says "banks are perfectly able to serve crypto customers." pic.twitter.com/IiFJhA8Qg3
— Watcher.Guru (@WatcherGuru) January 29, 2025
A New Era for Crypto and Banks
Until recently, banks have been unsure about offering crypto services as there was no clear definition of how to do it. But Powell came clear in his latest remarks. “Banks are perfectly able to serve crypto customers as long as they understand and manage the risks,” he said. With this, financial institutions can now offer services like storing Bitcoin, providing crypto investment options, and even handling digital transactions without worrying about breaking regulations.
Jerome Powell today: "banks are perfectly able to serve crypto customers as long as they understand and can manage the risks […] 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…
— nic golden age carter (@nic__carter) January 29, 2025
Positive Reaction From the Crypto Community
Crypto world rejoiced from Powell’s statement. This could be a game-changer, according to experts and investors. Of course, crypto investors such as Nic Carter and Hunter Horsley praised the mentions from the major news outlet.
SEC Repeals a Key Rule
Just days ago, the Securities and Exchange Commission (SEC) did indeed repeal a rule called SAB 121, as did Powell’s statement. Previously, this rule forced banks to disclose customer held cryptocurrencies as liabilities, which made managing digital assets very difficult for banks. With this rule gone now, banks have a simpler path to providing crypto custody services.
The Road Ahead
Soon, it is expected that more banks will begin offering crypto services, to the benefit of everyday people who will be able to buy, sell, and store digital assets. Others even believe this could help the U.S. become the leader of adoption of cryptocurrency globally.
These changes bring the digital assets even closer to full acceptance within the financial industry. However, as Powell stated and regulatory changes have taken place, this may help mark the start of an era when crypto can welcome everyone and no longer just those who relish tech.
