#PowellRemarks

🚨🚨🚨🚨🚨Jerome Powell, Chair of the Federal Reserve, has maintained a generally cautious yet pragmatic stance on cryptocurrencies. While he acknowledges the innovation inherent in the digital asset space, his remarks consistently emphasize the need for robust regulation, particularly for stablecoins, to ensure financial stability and consumer protection.

Powell has clarified that banks are "perfectly able" to offer crypto services to their customers, provided these activities are conducted in a safe and sound manner with appropriate risk management. He has expressed concerns about "debanking," where legitimate crypto businesses might be unfairly denied banking services due to excessive risk aversion by financial institutions.

However, he has also underscored that the threshold for banks directly engaging in activities like issuing digital assets is higher, given the nascency and inherent risks of the sector. The Fed, he states, is not looking to hold Bitcoin as a reserve asset, nor is it seeking legislative changes to allow it, emphasizing that such decisions would fall to Congress.

Overall, Powell's remarks suggest a recognition that crypto has gone "mainstream" and now requires clear rules to integrate safely into the broader financial system. He stresses the importance of regulatory clarity to foster innovation while mitigating potential systemic risks.