US Federal Reserve Chairman Jerome Powell recently said that banks can serve customers from the cryptocurrency industry as long as the risks are properly managed. He emphasized that the Fed is not against innovation and does not intend to take actions that will force banks to stop cooperating with law-abiding customers due to excessive risk aversion.
Powell noted that the threshold for banks engaging in cryptocurrency activities was slightly higher because of the newness of this area. He also emphasized the need for a more robust regulatory framework for cryptocurrencies and indicated that Congress is actively studying the issue.
Previously, cryptocurrency companies have expressed concerns about the difficulties in opening and maintaining bank accounts in the US. In response, Powell emphasized that banks are able to serve cryptocurrency companies provided that the associated risks are effectively managed.
Thus, the Fed does not prohibit banks from working with cryptocurrency customers, but emphasizes the importance of careful risk management and regulatory compliance.
