February 12, 2025.
Powell Expresses Concern Over "Debanking" in the Cryptocurrency Industry and Its Market Impact
During a hearing before the Senate Banking Committee, Federal Reserve Chairman Jerome Powell expressed concern about the phenomenon of "debanking" affecting cryptocurrency companies. He committed to adjusting internal supervision policies to address this issue and emphasized that stablecoins could have a significant future, requiring a strict regulatory framework to protect consumers. He affirmed that the economy is currently stable and there is no need to rush into further interest rate cuts. Bitcoin continued to decline by over 2% on Tuesday.
This news has prompted varying reactions in the cryptocurrency market. For Litecoin (LTC), one of the largest cryptocurrencies, Powell's statements have boosted some investors' expectations for price recovery. They believe new regulations could create a more favorable environment for stablecoins, even though LTC's price remains slightly volatile, reflecting cautious sentiment and concerns about future uncertainties.
Chia (XCH), with its unique data storage model, is also attracting increased interest from investors seeking more sustainable solutions. Many in the community believe that regulatory attention could create new opportunities for Chia's development, especially in improving sustainability in mining.
In contrast, Bitcoin Cash (BCH) continues to face challenges and downward pressure on its price. Cautious sentiment within the investment community has hindered BCH from breaking out, particularly as other major coins like Bitcoin are still in a downward trend. Many investors are hesitant to invest in BCH due to uncertainty about regulations and the future of the cryptocurrency industry.