Crypto Banks Can Serve Customers Now

Fed Chair Powell Supports U.S. Banks Serving Crypto Customers

• The Federal Reserve supports U.S. banks engaging with crypto customers, provided they manage associated risks.
• Fed Chair Jerome Powell emphasized that the central bank is not against innovation in the financial sector.
• Powell’s comments followed the House investigation into “Operation Choke Point 2.0,” a purported plot affecting financial services for certain industries.
• The SEC recently rescinded a rule requiring banks to list digital assets as liabilities, which was seen as a deterrent to crypto services.
• Documents revealed that the FDIC discouraged banks from offering crypto services in at least 23 instances since March 2022.

Jerome Powell stated that while crypto activities come with risks, they should not lead to automatic rejection of legal customers by banks.