Fed Chair Comments on Bitcoin and Crypto After Rate Decision

The United States Federal Reserve held its meeting earlier today, opting to maintain current interest rates.

In the aftermath, Chairman Jerome Powell addressed the topic of Bitcoin and cryptocurrencies during a press conference.

When questioned about the impact of digital assets on the financial system, Powell emphasized the importance of risk management by banks, stating that institutions capable of managing these risks can offer crypto services to their customers.

Powell highlighted that the Federal Reserve’s focus remains primarily on the banking sector’s involvement in the crypto space.

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He suggested that enhanced regulatory measures could prove advantageous, ensuring that financial institutions operate safely while engaging with cryptocurrencies.

Powell’s remarks underscore a cautious but open approach, where the Fed sees a structured regulatory environment as essential for integrating crypto services into traditional banking.

Kosta Gushterov