- Powell confirmed that banks are free to serve crypto customers, as long as they manage risks properly.
- Trump’s administration established a government crypto stockpile, while the Fed maintains it won’t hold Bitcoin.
- With inflation rising 3%, Powell signaled no rush for further rate cuts, keeping markets on edge.
Federal Reserve Chair Jerome Powell just made it clear: banks are free to serve crypto customers—as long as they understand the risks. No roadblocks, no federal interference, just a green light (with a side of caution).
Speaking on Capitol Hill during the second day of his semiannual monetary policy update, Powell fielded multiple crypto-related questions, solidifying his stance that the Fed isn’t out to cripple the digital asset industry. In fact, his latest remarks double down on what he hinted at just two weeks ago:
“Banks are perfectly able to serve crypto customers.”
That’s what he said at the FOMC meeting in January, and now? He’s backing it up.
From Skepticism to Support?
Powell’s stance on crypto has been… let’s say, evolving. Back in December 2024, he made it clear that the U.S. central bank had no plans to hoard Bitcoin or other digital assets.
“We’re not allowed to own Bitcoin,” he said.
But here’s the twist—Donald Trump’s administration wasted no time after returning to the White House. One of his first executive orders? Establishing a government crypto stockpile, likely to include BTC.
Now, Powell’s tone seems to be shifting. While the Fed won’t be stacking sats, it’s also not stopping banks from jumping in. The caveat?
“Banks are free to serve crypto customers, as long as they understand and manage the risks.”
It’s a notable shift. The Fed, which has historically kept crypto at arm’s length, is now allowing regulated banks to engage—so long as deposit insurance and risk management are taken seriously.
Markets Watching for Rate Cuts
Of course, crypto isn’t the only thing on Powell’s plate. The industry is also anxiously waiting for a decision on interest rates, which could set the tone for 2025’s economic landscape.
Last year, the Fed cut rates multiple times for the first time in years—a move widely seen as a sign that the U.S. was winning the inflation fight. But now? Powell is pumping the brakes on further cuts.
“We’re not in a rush,” he’s already said.
And just to add some fuel to the fire—fresh inflation data just dropped. Consumer prices climbed 3%, which could throw another wrench into rate-cut expectations.
What This Means for Crypto
The Fed’s decision to let banks handle crypto is a major shift—one that signals a more open approach toward digital assets in traditional finance.
Will this mean more institutions diving into crypto? Maybe. Will regulations still be a headache? Almost certainly.
But one thing’s clear: the crypto industry just got a nod of approval it didn’t have before.
