Federal Reserve Chair Jerome Powell reaffirmed that the central bank does not object to U.S. banks providing services to cryptocurrency companies or participating in crypto-related activities, so long as they follow established risk management and consumer protection standards.
Powell made the statement during his semiannual monetary policy report testimony before the House Financial Services Committee on June 24, reinforcing recent steps by federal regulators to remove barriers that have long restricted crypto’s access to traditional banking.
The Federal Reserve Board formally removed “reputational risk” from its bank supervision framework on June 23, ordering examiners to strike the subjective standard from examination manuals and focus instead on measurable financial exposures.
The decision aligns the Fed with the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency, which made similar revisions earlier this year. Together, the three regulators oversee every federally insured depository institution in the United States.
The coordinated policy shift eliminates a broad and often opaque reason that examiners have used to deny banking services to crypto firms or prevent banks from offering services like Bitcoin trading or custody.
Under the updated guidance, Fed staff will be retrained to implement the changes uniformly across all supervised institutions and will coordinate with peer agencies to ensure consistent oversight.
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