Fed Chair Jerome Powell told Congress that U.S. banks are "free to provide services to the crypto industry and conduct crypto activities," so long as they meet safety, soundness, and compliance standards. This announcement follows a June 23 Fed guidance that removed "reputational risk" barriers.
This is a pivotal shift in U.S. financial policy. By eliminating subjective risk hurdles, regulators are formally enabling banks to engage with crypto-opening doors for services like custody, trading desks, payment rails, stablecoin issuance, and DeFi integrations.
Silvergate Bank +4.5%, Signature Bank +5.3%
Ethereum surged ~3%, nearing $2,455 on elevated volumes
Renewed optimism in crypto custody & institutional adoption
Watch for bank announcements on crypto custody, stablecoin wallets, and trading services. Follow congressional moves on the GENIUS Act and CLARITY Act. If legislative momentum continues, this could ignite a broader institutional wave in crypto-potentially pushing $ETH , $BTC , and bank-stock pair trades higher.
