– I think it would be helpful if there were a larger regulatory framework around crypto – said the Chairman of the U.S. central bank Jerome Powell at a press conference of the Federal Open Market Committee on January 29.
The comments came as the Fed held interest rates at 4.25 to 4.5 percent following last week’s inflation data, which showed that it was not as high as many had expected.
‘Don’t Debank Crypto Clients’
Powell also stated that the central bank is not against innovations regarding cryptocurrencies.
Speaking about banking restrictions, he added that the Fed certainly does not want to take actions that would lead banks to cut off services to clients who are perfectly legal simply due to excessive risk aversion, possibly related to regulation and oversight.
Powell’s remarks at the first FOMC meeting under the Trump administration came at a time when concerns about so-called ‘debanking’ efforts had reached the highest government levels.
– Banks are perfectly capable of serving crypto clients, as long as they understand and can manage the risks, and that is certainly safe and sound. The threshold was a bit higher for banks dealing with crypto activities, and that is due to the novelty – said Powell.
