Banks can serve crypto customers as long as the risks are managed'. Fed chief Jerome Powell

Federal Reserve chief Jerome Powell stated yesterday that US banks can serve crypto customers as long as they effectively manage the associated risks.

January 30, 2025
Finance
krypto
Banks can serve crypto customers as long as the risks are managed'. Fed chief Jerome Powell

This clarification comes amid a situation where many banks have refused to accept customers operating within crypto and web3, so-called “debanking”.

Innovation and Obedience

Powell emphasized two key points:

  • The Federal Reserve is not opposed to innovation
  • They do not want to do actions that would lead to banks ending customer relationships with law-abiding customers simply because of excessive risk aversion, possibly related to regulation and supervision

Threshold for risk management

Powell at the same time stressed the need for a higher risk management threshold for banks that engage in crypto activities due to their innovative nature. He assured that the central bank supports innovation.

At the same time, legislative and legal action is underway to address the ongoing debate surrounding banks' services to crypto firms.

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Banks can serve crypto customers as long as the risks are managed'. Fed chief Jerome Powell

Federal Reserve chief Jerome Powell stated yesterday that US banks can serve crypto customers as long as they effectively manage the associated risks.

January 30, 2025
Finance
krypto

This clarification comes amid a situation where many banks have refused to accept customers operating within crypto and web3, so-called “debanking”.

Innovation and Obedience

Powell emphasized two key points:

  • The Federal Reserve is not opposed to innovation
  • They do not want to do actions that would lead to banks ending customer relationships with law-abiding customers simply because of excessive risk aversion, possibly related to regulation and supervision

Threshold for risk management

Powell at the same time stressed the need for a higher risk management threshold for banks that engage in crypto activities due to their innovative nature. He assured that the central bank supports innovation.

At the same time, legislative and legal action is underway to address the ongoing debate surrounding banks' services to crypto firms.

‍

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