Banks Can Serve Crypto Customers Safely
Jerome Powell, Chairman of the United States, said that as long as the risks involved effectively are effectively managed, banks can provide services for cryptocurrency customers.
The statement was a decision to maintain the benchmark interest rate in 4.25 % to 4.5 % in the Federal Reserve decision. This was decreased three times in a row at the end of 2024.
The Fed Chairman said that banks can serve encrypted customers
In the news on Wednesday MeetingPowell (Powell) solved the problem of potential influence on speculation Financial stability of the cryptocurrency market And its role in family investment portfolio. He explained that the role of the Federal Reserve is to supervise the bank.
Powell replied: “As long as the bank can understand and manage risks, it can provide services to encrypted customers.”
It is worth noting that the recent Securities and Exchange Commission (SEC) The employee Accounting Announcement (SAB) 121 was abolished. The regulations have previously prevented banks from providing monitoring services for digital assets.
With the replacement of SAB 121 to SAB 122, banks may have greater flexibility to provide encrypted management services. This transformation can encourage more widely and further integrate cryptocurrencies into the traditional financial system.
Powell emphasized that many banks Federal Reserve Supervision Already engaged in encryption activities. However, he acknowledged that the threshold for the supervision of banks to enter the space is still very high.
He explained that banks must be cautious when dealing New assets, such as cryptocurrencies. This is especially true when operating in the Federal Security Network (including deposit insurance).
Powell added: “We do not oppose innovation, and of course we do not want to take action, which will cause banks to terminate completely legal customers because they avoid excessive risks.”
Crypting becomes mainstream!
The encrypted community responded positively to Powell’s statement. Many people think this is a sign of cryptocurrencies Acceptance in the traditional financial world is increasing.
“Banks will become the main catalyst of cryptocurrencies in 2025. The mainstream era starts,” Bitwise CEO Hunter Horsley Publish On X (previously Twitter).
This news came, the price of Bitcoin surged. After a week of difficulties, BTC recovered its motivation. At the time of release, it exchanged hands at a price of $ 105,066, an increase of 2.24 % in the past day.
The encrypted analyst Marty Pall’s statement in the latest X post attributed Powell’s statement to Powell’s statement.
“IMO: This means #FDIC will ensure that the bank’s customer cryptocurrency.” WriteEssence
However, not everyone in the banking industry believes in Powell’s statement. Fox business reporter, Eleanor Terrett, shared a anecdote of a major bank source, and the bank refuted Powell’s optimism.
“Yes, it’s like saying,” I can’t do it, but you make your own decision. ‘ explainEssence
Terrett further explained that Powell asserts that banks have the ability to fully develop business with encrypted customers. Bankers emphasized that although they want to cooperate with cryptocurrency customers, the supervision challenges make it very difficult The bank interacts with the departmentEssence
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