Current Date:February 22, 2025

Crypto money statement came from the Fed chairman, prices rose!

FED President Jerome Powell discussed the concerns about the risks of crypto currencies in the annual report of the Financial Stability Council. Powell was asked whether the speculation in this unprocessed asset class would damage individuals’ financial welfare, especially unlike wider concerns about the financial system.

Crypto money statement came from the Fed President

Jerome Powell, President of the US Federal Bank (Federal Reserve), made important statements about crypto currencies after the Federal Open Market Committee (FOMC) meeting, where interest rates are left unchanged. Powell said it is possible for banks to provide services to crypto customers, but the risks should be well managed in this process. Powell used the following statements:

Banks can serve crypto customers as long as they can manage risks. This is a condition that is already valid for financial institutions under our control. However, there is a higher threshold for banks to participate in crypto activities.

The FED President emphasized that they are not against innovation and that regulatory institutions should not prevent legal customers from receiving services due to an extremely cautious approach. However, it would be useful to create a more comprehensive regulatory frame for individuals who consider crypto deposit investment. Powell said that the Congress is actively working on this issue and that they are constantly in contact with MPs as a FED.

Stablecoins were on the agenda

These statements came after the assessments that stablecoins have potential risks in terms of financial stability in the Financial Stability Inspection Council report published in December. Powell said the Fed’s main role was to control how banks interact with crypto assets, and there are additional regulatory measures for banks because crypto assets are still a new area.

Crypto markets are often sensitive to the Fed’s interest decisions. Former US President Donald Trump, before the FOMC meeting, called for reducing interest rates, but Powell has no obligation because it is an independent institution. Powell will continue to serve as the FED President until May 2026.

Prices rose

Bitcoin (BTC) exceeded $ 105,000 in night hours with the change in investor sensitivity after the Federal Reserve decision to pause interest rate cuts and the Powell statements mentioned above. Following the announcement, the world’s largest crypto currency, which fell to $ 101,800, has rapidly recovered and reached the highest level of the last three days. During the Federal Open Market Committee meeting, the FED kept the target range of 4.25 %to 4.50 %by not changing the indicator interest rate. Since President Donald Trump’s election victory in November, Bitcoin has gained more than 50 %of the expectation that more crypto -friendly policies will be followed under the Trump administration.

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