🇺🇸 FED CHAIR POWELL SIGNALS SUPPORT FOR BANKS IN CRYPTO

On June 24, 2025, during a testimony before the House Financial Services Committee, Fed Chair Jerome Powell stated that U.S. banks are free to engage in crypto activities, provided they do so safely and with proper risk management.

This marks a shift toward a more open policy from the Fed. Back in April, it withdrew earlier crypto guidance that required banks to notify regulators before entering crypto markets. Just a day before Powell’s statement, the Fed also removed “reputational risk” from its supervision framework — aligning with FDIC and OCC, and giving banks more room to work with crypto firms.

Powell clarified: “Banks are free to offer services to crypto companies or engage in crypto themselves, as long as they do so in a safe and sound manner.”

➤ This opens the door for big banks like JPMorgan or Bank of America to offer crypto custody, trading, or even stablecoin issuance.

➤ It could accelerate hybrid products that combine crypto and traditional finance.

➤ Institutional adoption may rise, supported by clearer regulatory backing.

However, Powell emphasized that safety and compliance are key. Banks must invest in tech, controls, and risk systems. Smaller banks may hesitate due to complexity and cost.

📉 For the crypto market, this is a bullish signal — but actual impact depends on how quickly banks act. If they move cautiously, the price response may be muted.

In short, this is a strong green light from the Fed, signaling growing legitimacy for digital assets. Yet investors should remain alert to upcoming rules, especially around stablecoins (like the GENIUS Act), as regulatory clarity is still evolving.

#CryptoBanking #JeromePowell #FedMoves