Fed Chair Jerome Powell offered a rare take on the crypto industry at today’s testimony before Congress. When asked about whether the Chairman saw a shift in financial industries toward digital assets, Powell obliged, arguing that there’s been a “very significant change in tone” surrounding the digital asset industry.
His comments reflected what he described as the “evolving thinking and status” of crypto, suggesting that regulatory attitudes, and potentially bank behavior, are beginning to shift alongside the industry’s maturation.
“What I do see is a very significant change in the tone, and it really does reflect evolving thinking and the evolving status of the crypto industry,” Powell said. “And I would expect over time we’ll see more activity. Banks are free to provide banking services to the crypto industry and to conduct crypto activities, as long as they do so in a way that is protective of safety and soundness.”
On the matter of oversight, Powell reiterated that U.S. banks are free to choose their clients, including crypto-related businesses. “That’s not our decision,” he noted, reinforcing that the Fed doesn’t determine who financial institutions serve; only how they operate within safe and sound practices.
The statement adds nuance to the long-debated regulatory approach toward digital assets in the U.S. It also arrives at a time when crypto markets are watching regulators closely for signals about access to traditional banking rails.
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