Jerome Powell, President of the US Federal Reserve (FED), opened the doors to the sector by stating that there is no harm in banks’ service to crypto currency customers. However, Powell stressed that it is valid only if banks manage the risks correctly. Following the explanations, the Bitcoin and the Altcoin market exhibited movements in the way…
Following the Powell statements dated January 29, 2025, the price of Bitcoin took action
Powell, on Wednesday after the Federal Open Market Committee (FOMC) meeting, said in a press conference, “Banks, the risks can be provided to crypto customers as long as they can understand and manage the crypto customers,” he said. He also underlined that the activities of the banks should be “safe and robust” in terms of the safety of the financial system.
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These words of the FED President were considered as a significant change in the attitude of the policy makers after a cautious approach to crypto currencies during the Biden administration. Following Powell’s statements, Bitcoin’s price increased by 4 %and reached $ 104,300.
“Debanking” discussions in banking
Powell also touched upon the issue of “Debanking”, which is a controversial issue in the United States, that banks avoid working with customers in certain sectors.
“We do not want to be left out of service by banks because of excessive risk of excessive risk of customers who operate legally, Pow said Powell, emphasizing the sensitivity of this issue.
In recent weeks, the famous entrepreneur and venture capital Marc Andreessen had harshly criticized banks’ refusal to provide financial services to crypto companies.
In the US this year, discussions on whether banks pushed their crypto customers out of the financial system is expected to move to Congress. This brings with it the question of whether “Debanking” or just a “risk reduction” policy.
Powell’s statements are interpreted as a sign that banks can change their attitudes towards the crypto industry and alleviate regulatory pressure. This development can be a positive signal, especially for companies operating in the crypto sector.
