Federal Reserve Chair Jerome Powell's announcement regarding banks' freedom in relation to cryptocurrencies opens new horizons for the banking sector.
Powell's Announcement on New Rules
Jerome Powell stated that U.S. banks have the freedom to provide services to the cryptocurrency industry, marking a significant change in regulatory policy. As Powell mentioned, 'U.S. banks are free to provide banking services to the crypto industry.'
Impact on the Cryptocurrency Market
This announcement is expected to lead to increased liquidity and institutional adoption of cryptocurrencies. The removal of compliance risks allows banks to allocate resources towards crypto services, positively affecting major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH).
Prospects for Banks and the Crypto Industry
Experts anticipate increased inflows and partnerships between traditional financial institutions and the crypto sector, creating opportunities for new regulatory frameworks and technological advancements in this area.
Thus, the Federal Reserve's new stance may represent a crucial step towards the further development and integration of cryptocurrencies into the traditional financial system.
