Fed Chair: Banks Free to Work With Crypto Firms

U.S. Federal Reserve Chair Jerome Powell recently stated that American banks are allowed to legally offer services to crypto companies, provided they meet safety requirements and ensure protection for clients and the financial system. The announcement marks a notable regulatory shift toward the digital asset industry.

According to Powell, banks may engage in crypto-related activities and collaborate with entities in this sector as long as they follow prudent and compliant practices. The statement was made during a public briefing and later shared by various financial and crypto media outlets.

Powell also addressed interest rates, stating that a rate cut could be considered later this year, despite the Federal Reserve’s own forecasts suggesting rising inflation. This position has sparked criticism from analysts who view the stance as contradictory.

Powell’s statement could facilitate broader consumer access to crypto services and encourage deeper integration of blockchain technology into traditional finance.