Federal Reserve Chair Jerome Powell confirmed that banks are allowed to provide services to cryptocurrency firms, removing uncertainty and fostering liquidity in the crypto market.
Clarification of Service Policy
On June 24, Jerome Powell confirmed that U.S. banks are permitted to serve cryptocurrency companies. His statement dispels prior uncertainties and emphasizes the growing role of digital currencies in corporate finance.
Implications for the Crypto Industry
Powell's announcement may affect the crypto industry's access to banking services. Increased institutional support is expected to boost liquidity in the cryptocurrency market and enhance the stability of major digital assets like Bitcoin and Ethereum.
Future of Bank and Crypto Interaction
Powell's remarks highlight the anticipated confidence boost within the U.S. cryptocurrency ecosystem. This policy update may lead to closer integration between banks and blockchain companies, fostering technological advancement and financial growth.
Recent shifts in the Federal Reserve's stance indicate that banks can safely engage with crypto firms, encouraging a rise in institutional investments in the crypto industry.