US banks have just scored an official OK from the Federal Reserve to jump into bitcoin and other crypto services—so long as they can handle the risks.
Fed Chair Jerome Powell spelled it out at a press conference after the latest Federal Open Market Committee (FOMC) meeting, emphasizing that while the Fed’s main focus is on overseeing banks, it’s cool with them offering digital asset services if they truly understand what they’re getting into.
Powell noted that several banks under the Fed’s supervision are already dabbling in crypto, and stressed that those looking to follow suit would be held to “a little bit higher” standard when it comes to risk management. He also made it clear that the central bank isn’t anti-innovation, pointing to a Financial Stability Oversight Council (FSOC) report on potential crypto risks and saying that the Fed isn’t out to slam the door on new tech.
All this arrives just as Congress is investigating claims of an organized anti-crypto push—often referred to as “Chokepoint 2.0”—aimed at disconnecting digital assets like bitcoin from the traditional banking system.
The Move Received Praise from the Crypto Industry...
Industry leaders are giving the move a big thumbs-up. Coinbase’s chief legal officer, Paul Grewal, praised the decision, saying it simply brings crypto in line with other industries from a banking standpoint. “Banks now have the freedom to manage the risks involved in cryptocurrencies,” he said, adding, “What a change from the last four years!”
-------------------
Author: Oliver Redding
Seattle Newsdesk /
No comments
Post a Comment