Powell says Fed doesn’t intend to prevent banks from offering crypto services

Chairman of the Federal Reserve (Fed), Jerome PowellHe said that the Central Bank regulator does not want to prevent banks from serving crypto perfectly legal customers as long as they understand its risks.

During the 12th. February Committee on Monetary Policy, Powell said banks and Fed should be “received” that crypto activities can be carried out within financial institutions, citing detention as one example. However, he warned banks to avoid too far in its offer.

He added:

“In fact, in the Banama arranged in Fed, there are a lot of crypto activities that are now happening. They just happen under the frame that we (Fed) was sure that the bank has understood and understand, exactly what they do.”

The notes came after the forensic chair was asked to whether the collapse could affect the American banking system and if there were any ways to avoid it.

Anti-infection measures

Powell was also examined Silicon Valley Bank (SVB) and Signatory Incidents. Both banks were collapsed in March 2023. Due to a combination of factors, such as lack of diversification, the decline in the values ​​of their investment in long-term cash registers and banks.

Banks knew they were crypto-suitable with Circle retention $ 3.3 billion her american coin (USDC) Reserves with SVB when collapsed.

However, Powell did not mention CRIPTO in its answer, attributing collapse to exit long positions in underwater securities and unsecured deposits.

In addition, he said that the Fed Realized Investments that have brought medium sized banks that have “any characteristics” similar to signature and SVB, to ensure that they were not exposed to the same risks in order to avoid wider infection.

Open to innovation

It is known that this is the second time in the month that Powell confirmed that banks can offer crypto services to their customers.

During his speech after the meeting of the Federal Open Market (FOMC), he said that Fed were not interested in the crypting between banks in Kriptou. In these cases, it added that the role of the Feda was to analyze the banks so much.

And also recognized If the “threshold was slightly higher for banks engaged in crypts,” justifying additional supervision due to the novelty on the market.

However, Powell pointed out that Fed remains open to innovations in financial markets. And also said 11. February that the United States will not issue the digital currency of the Central Bank (CBDC) as long as he is the president of Fed.

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