Powell Says Banks May Offer Crypto Services if Safety Standards Met

Federal Reserve Chair Jerome Powell said on 24 June that U.S. banks are permitted to serve cryptocurrency firms and engage in digital-asset activities provided they maintain the industry’s customary standards for safety and soundness. “Banks get to decide who their customers are,” Powell stated, adding that institutions are free to conduct crypto business so long as risk controls remain robust.

The remarks clarify the central bank’s stance after years of mixed regulatory signals that had left many lenders cautious about the sector. Powell’s assurance could pave the way for large financial institutions to expand custody, trading or payment services linked to Bitcoin and other tokens, though supervisory expectations on capital, liquidity and anti-money-laundering compliance remain in force.

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