- Jerome Powell is okay with banks serving crypto customers under correct guidance.
- Industry side regarded their statement as a “shift” from the Biden administration.
Fed’s chairman Jerome Powell has signaled a probable U-turn from the notorious crypto-de bank, which his agency has been involved to decrease during the Biden administration.
Baptized ‘Operation Chokepoint 2.0 (OCP 2.0)’ The Reported Wide scale Restriction of bank access Against crypto companies, the new Trump administration caught attention and formed a formal investigation.
However, during the Wednesday press, Powell made it clear that the banks can now serve crypto customers under correct risk protection. The abandonedThe
“Banks can perfectly serve crypto customers as long as they understand and can handle the risks (…) we are not against innovation.”
He continued,
“We really do not want to take measures that would get the banks to terminate customers that are completely legal just because of the excess risk aversion may be related to regulation and monitoring.”
A new dawn for crypto users?
Nic Carter, co -founder of Castle Island Ventures and one of the prominent people who covered OCP 2.0, has always attached the Fed as the power behind the massive off bank in the sector.
Note, however, that the latest Powell statement has made him believe that the restriction was over. The mentionedThe
“Huge tone shifts. OCP2.0 is over. This is particularly remarkable as my understanding is the Fed specifically where the Nexus of OCP2.0. ”
For perspective, in a new “Joe Reagan Experience” interview, A16Z founder Marc Andreessen claimed that 30 technical founders were canceled over the past four years.
James Comer, President of the Chamber of Commerce for Surveillance and Government Reform, is Investigation The thing. As such, the shift relieves most of the former on the side of the technical start -ecosystem, including crypto.
Coinbase’s Chief Legal Officer, Paul Grewal, also called Powell’s statement a “change” from the latest administration. The mentionedThe
“What I hear Jay Powell say is: banks are now free to handle the risks from crypto, just as they handle all risks from any other industry. What change from the past four years. “
However, that is not everything. The infamous Sec Accounting Guidance SAB 121, which limited the introduction of crypto assets in the company’s financial reports, was also recently repealed.
Overall, these positive updates can drive more crypto adoption in the United States.
