![Pinterest](https://pinterest.com/pin/create/button/?url=https://unocrypto.com/federal-reserve-chair-says-banks-are-perfectly-able-to-serve-crypto-customers-but-advices-caution/&media=https://unocrypto.com/wp-content/uploads/2025/02/Federal-Reserve-Chair-Says-Banks-Are-Perfectly-Able-to-Serve-Crypto-Customers-But-Advices-Caution.png&description="Banks can serve crypto consumers as long as they understand and can manage the risks," said Jerome Powell, the chair of the Federal Reserve.){kind=link}
Federal Reserve chair Jerome Powell recently made a beneficial statement for the crypto industry. As long as banks are aware of and capable of managing the risks, they can serve crypto consumers, stated Federal Reserve Chair Jerome Powell.
The subject of cryptocurrencies was mentioned by Federal Reserve Chair Jerome Powell at a press conference following the announcement of unchanged interest rates.
US FED Does Not Oppose Innovation
Apart from keeping the interest rates unchanged, the Fed chair also stated that they are not opposed to innovation and that the Fed does not wish to take any steps that would lead banks to fire law-abiding clients due to excessive risk aversion, which may have anything to do with oversight and regulation.
The statement comes at a time when the US is seeing relaxed policies and a shift in crypto stance under the current President Donald Trump.
Also Read: U.S Senator Lummis Plans To Push FED To Buy Bitcoin Reserves By Selling Its Gold
Powell’s Statement Comes Amid Change Shift in US Policies
Regulations pertaining to cryptocurrency have comparatively laxed ever since the Trump administration has taken the white house, emphasizing innovation and deterring illicit activity such as money laundering.
Although there hasn’t been a significant revamp, regulatory agencies like the SEC continue to take a hands-off approach, allowing the cryptocurrency sector to expand despite ongoing worries about fraud and security.
Trump’s emphasis on financial innovation raises questions about more precise rules, especially with regard to ICOs and taxes.
Fed’s Relaxed Stance Comes As More Banking Giants Look Towards Offering Crypto Services
A number of banking behemoths are diversifying their portfolios to include digital asset offers as cryptocurrencies become more widely accepted.
These days, banks like JPMorgan, Goldman Sachs, and DBS offer institutional clients trading, custody, and consulting services connected to cryptocurrencies. By enabling them to purchase and hold digital assets like Bitcoin and Ethereum through their banking platforms, some are also helping retail clients invest in cryptocurrencies.
These organizations are also incorporating blockchain technology to enhance security, facilitate cross-border transactions, and make payments more effective.
Growing client desire for exposure to digital assets and the necessity to maintain competitiveness in a financial environment that is changing quickly are the main drivers of the push towards crypto services.
While providing cryptocurrency products, banks are collaborating closely with regulators to guarantee adherence to know-your-customer and anti-money laundering regulations.
This change marks the beginning of a new age for banking services and is indicative of a larger trend of traditional financial institutions adopting blockchain technology and digital currency.