FED Powell: Banks can serve Cryptocurrency businesses, provided that the risks are manageable

The Central Bank releases positive signals and the market sentiment improves.

The chairman of the (Fed), Jerome Powell, recently stated that banks can provide services to cryptocurrency companies, provided that they can effectively manage related risks. Although this statement maintains a cautious attitude, it also shows the open attitude of regulatory agencies towards the cryptocurrency market, bringing a glimmer of optimism to the current sluggish market.

At the press conference after the Federal Open Market Committee (FOMC) meeting, Powell emphasized, "The threshold for banks to participate in the cryptocurrency business is indeed high because it is a relatively emerging field." However, he also added that the Federal Reserve remains open to financial market innovation, which is different from the more hostile stance of regulatory agencies towards cryptocurrencies in the past.

(Unfazed by Trump's pressure! The Fed remains unchanged, with weakened confidence in inflation prospects and the possibility of a first rate cut possibly waiting until June )

The Fed clarifies: No suppression of legitimate crypto businesses

Recent reports that U.S. cryptocurrency companies are facing difficulties in banking have led some to believe that regulators are deliberately blocking the development of cryptocurrencies. In response, Power dismissed the Fed's plan to "block" legitimate businesses, stressing that the role of regulators is only to ensure the stability of banks, not to prevent specific industries from accessing financial services.

"The Fed's responsibility is to analyze the relationship between banks and the cryptocurrency industry, not to terminate the business of any legitimate enterprise," Powell said. He also acknowledged that the cryptocurrency industry still faces many regulatory challenges.