Jerome Powell said that banks were “perfectly able to serve crypto customers“ and suggested that lawmakers should act to address the potential risks to households.
Federal Reserve Chair Jerome Powell addressed a question on crypto after announcing that interest rates would remain unchanged in the United States.
In a press conference following a meeting of the Federal Open Market Committee (FOMC) on Jan. 29, Powell said banks were “perfectly able to serve crypto customers” provided they managed the risks — conditions that were already in place under financial institutions the Fed supervised. However, he hinted that there was a higher threshold for banks looking to engage in crypto activities.
“We’re not against innovation, and we certainly don’t want to take actions that would cause banks to terminate customers who are perfectly legal, just because excess risk aversion may be related to regulation and supervision,” said Powell.
Read more,# Jerome Powell Addresses Cryptocurrency Concerns – Not Just Any Old Banking Chat!
## Key Points Breakdown:
– **Banking and Crypto**: Jerome Powell reassures us that banks can handle crypto customers just fine. It’s not like they’re trying to juggle flaming torches while riding a unicycle.
– **Regulatory Caution**: He also pointed out that while banks can engage with crypto, they better keep their risk manage in check. No reckless poker faces here!
– **Innovation Enthusiasm**: Powell isn’t waving a “no crypto” banner; instead, he promotes innovation and discourages banks from giving the cold shoulder to legitimate crypto customers.
– **Call to Action**: Powell nudges lawmakers to step up and tackle the risks associated with crypto in households. Basically, he’s saying, “Hey, lawmakers, time to put on your big boy pants!”
## Hot Take
Looks like Jerome Powell is the cool dad of the banking world—he’s not against his kids (crypto) having fun, but he wants to make sure they don’t burn the house down in the process. As long as the banks are robust and smart with their crypto friends, all is well in the financial universe! Let’s just hope lawmakers can keep up with the dab dance of digital currencies without tripping over their shoelaces.
#yolo #cryptocurrencies #jeromepowell #sparkleandserve
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