Jerome Powell on crypto: 'Many of these activities can be done inside of banks'

Jerome Powell on crypto: 'Many of these activities can be done inside of banks'

While acknowledging crypto's volatility and speculative nature, Jerome Powell stated that the Fed does not intend to prevent banks from serving legal crypto customers as long as they understand and manage the associated risks.

finbold.com

Federal Reserve Chair Jerome Powell has stirred the crypto pot by suggesting that many crypto activities could be integrated into traditional banking. Speaking to the House Financial Services Committee, Powell emphasized that while crypto is volatile and speculative, the Fed won't stop banks from serving legal crypto customers, provided they manage the risks. He highlighted the need for caution but also suggested that services like crypto custody could fit well within banks under proper oversight. This comes amid inflation concerns and economic uncertainty, adding layers of complexity to the crypto landscape. Powell's comments, alongside the SEC's recent moves, might pave the way for a more integrated banking-crypto relationship.