Fed Chair Powell Confirms Banks Can Now Offer Crypto Services to Customers

• Federal Reserve allows regulated banks to engage in crypto services with strict risk management measures.
• Interest rates remain unchanged as inflation concerns persist, aligning with market expectations for 2025.
• Bitcoin shows a 3.31% daily gain and $51.83 billion trading volume.

Federal Reserve Chair Jerome Powell has stated that banks can provide services to cryptocurrency customers and effectively manage associated risks. Powell confirmed this development during a recent speech, emphasizing that regulatory oversight ensures the safety and stability of the financial system.

Regulatory Considerations for Banks Engaging in Crypto Services

In a post by Vivek on the X platform, Powell explained that the Federal Reserve’s role regarding Bitcoin and cryptocurrencies is to assess banks’ involvement. He indicated that banks under regulatory supervision can engage with cryptocurrency customers by implementing risk management measures. Powell mentioned that several banks already operate within these parameters.

Powell acknowledged that the threshold for banks engaging in crypto-related activities has been higher than other financial services. This heightened scan aligns with the Federal Reserve’s commitment to maintaining a secure banking system. Banks that choose to offer crypto services must ensure compliance with existing regulations and demonstrate the ability to mitigate financial risks.

No Rate Cuts as Federal Reserve Maintains Interest Levels

Historically, FED cut rates have always affected the crypto market. During the announcement, the Federal Reserve decided to keep interest rates unchanged in its latest policy announcement, as reported by ABC News Live, marking the first decision of 2025.

This move aligns with market expectations, as inflation remains a key concern. The Fed noted that inflation is still somewhat elevated, acknowledging that progress in reducing price pressures has stalled in recent months.

Tracking the crypto market reaction, we see that the dominating market is still in a stable position. According to CoinMarketCap data, The image shows Bitcoin priced at $105,375.59, reflecting a 3.31% increase over the last day.

The market capitalization is $2.08 trillion, while the 24-hour trading volume is $51.83 billion, indicating a 20.06% rise. Bitcoin has always seen a steep correction after Powell minutes talk, but this case is different as it’s recording gains instead.