- Main event, leadership changes, market impact, financial shifts, or expert insights.
- Powell confirms banks can offer crypto services.
- Bitcoin price surges after Fed’s announcement.
Federal Reserve Chair Jerome Powell announced before Congress that U.S. banks may offer cryptocurrency services on June 24-25, marking a significant regulatory shift toward bank engagement with crypto assets.
The announcement by Powell catalyzed immediate market reactions, including a Bitcoin surge above $105,000 and increased investments in BTC and ETH, signaling enhanced institutional interest.
Federal Reserve Chair Jerome Powell clarifies regulatory guidance, allowing U.S. banks to offer cryptocurrency services, given risk controls. This policy shift addresses previous limitations preventing broader banking engagement in crypto. Several senators explored this topic in congressional hearings.
Jerome Powell testified before Congress that banks can engage with crypto firms, emphasizing adherence to risk management. Senator Cynthia Lummis questioned Powell about past guidance. Powell indicated an improved understanding of the maturing crypto industry.
Impact of the Federal Reserve Announcement
The announcement led to immediate BTC spot ETF inflows, while Bitcoin surged over 5.7%. Ethereum saw positive effects, though less pronounced. Traders and investors anticipate further price movements as banks adapt to engage with crypto assets.
Broader implications include potential financial gains for crypto markets and banks aligning with the Fed’s position. Political and regulatory landscapes adjust to new integration protocols, impacting traditional financial structures and crypto convergence.
Regulatory Shift and Future Implications
The move signals a shift for banks and enhances regulatory clarity for cryptocurrency services in the U.S. It affects various financial players and potentially alters crypto-space roles, encouraging mainstream crypto adoption.
Potential political and technological outcomes include new U.S. legislation like the GENIUS Act, affecting stablecoin governance. Market trends suggest increasing cooperation between financial institutions and crypto platforms, enhancing crypto acceptance and transforming transactional landscapes.
“I think what’s happening is the industry is maturing, our understanding of it is improving, and in a sense, it’s becoming much more mainstream…banks could always choose their customers and take on other activities, provided they do it in a safe and sound manner.” — Jerome Powell, Chair, Federal Reserve
Disclaimer: The content on The CCPress is provided for informational purposes only and should not be considered financial or investment advice. Cryptocurrency investments carry inherent risks. Please consult a qualified financial advisor before making any investment decisions. |