Fed Chair Powell: Banks Are Free to Provide Services to Bitcoin and Crypto Industry

HKAN | Sep 7

 

Federal Reserve Chair Jerome Powell has confirmed that U.S. banks are free to provide services to the Bitcoin and cryptocurrency industry, emphasizing that the central bank does not prohibit financial institutions from engaging with digital assets.

Speaking at a recent event, Powell highlighted that while the Fed continues to monitor crypto market risks, banks can choose to offer services such as custody, payment processing, and lending to crypto companies and investors.

This statement comes amid growing institutional interest in cryptocurrencies, as more traditional financial players explore ways to integrate digital assets into their operations. Powell’s remarks provide regulatory clarity, potentially encouraging banks to expand crypto-related services without fear of central bank restrictions.

Industry experts see this as a positive signal for Bitcoin and the broader crypto ecosystem, indicating increasing mainstream acceptance and potential for deeper integration between traditional finance and blockchain-based markets.

With this confirmation from the Fed, the U.S. banking sector may play a larger role in supporting crypto adoption, liquidity, and investment products in the coming months.