In Major Policy Clarification, Fed Chair Says Banks Are ‘Free to Engage’ With Crypto

• Fed Chair Jerome Powell confirmed U.S. banks are free to provide services to crypto firms.
• The policy clarification removes a key barrier for traditional financial institutions.
• The statement confirms the Fed’s stance is to not inhibit crypto banking relationships.

Federal Reserve Chair Jerome Powell delivered a message to two very different audiences on Tuesday, June 24. For the broader economy, he signaled the central bank’s tough fight against inflation is far from over. But for the crypto industry, he provided a quiet but clear green light for Wall Street to get more involved. 

During congressional testimony, Powell confirmed that U.S. banks are free to do business with the crypto sector, a major policy clarification. The statement came as he also defended the Fed’s decision to hold interest rates at a restrictive level, a stance that analysts like attorney John E. Deaton believe will continue to put long-term pressure on the U.S. dollar.

The Fed’s Ongoing Inflation…

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