Fed’s Powell says Bitcoin and Krypto have matured and become more mainstream


Key dealers

  • Federal Reserve chairman Jerome Powell stated that crypto assets are becoming more mainstream and the industry matures.
  • Powell expressed support for banks that engage in crypto, as long as regulation ensures security and health.

The Federal Reserve Chairman Jerome Powell said on Wednesday that Bitcoin and other crypto assets have matured and become more mainstream, and that the central bank re -examines political statements made during the Biden.

Powell’s comments came in response to a question from Senator Cynthia Lummis during his June 25 testimony to the Senate Bank Committee.

Lummis questioned what had changed with regard to Stablecoin risks since the FED’s Policy 2023 according to § 9) and pressed Powell if the Fed intends to withdraw the policy statement.

Section 9 (13) provides the Federal Reserve Board authority to regulate operations in state -listed member banks. In January 2023, the Fed issued a formal statement under this authority and clarified how it would deal with “new activities”, especially those involving crypto assets, distributed Ledger Technology (DLT) and Stablecoins.

“The Board generally considers to issue tokens on open, public and/or decentralized networks, or similar systems is very likely that it is inconsistent with safe and sound bank practice,” per Policy statement.

“The industry matures, our understanding of it improves,” Powell said during Wednesday’s testimony. “And in a way it becomes much more mainstream.”

Powell noted that the supervisory authorities reconsider previous decisions made during Crypto’s early development phase.

“We all review the things that were done during that era,” he said.

The Fed Chairman also indicated support for banks that conduct crypto under appropriate conditions.

“It is appropriate, it has always been appropriate for the banks to choose their customers and to be able to perform activities as long as they are safe and healthy,” Powell said.

Powell, whom he spoke to section 9 (13), said it was part of a broader regulations that did not only focus on crypto, although crypto was a component.

He repeated that the Fed is currently examining and withdraws several crypto-related guidelines that were issued during the Biden era.



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