U.S. Banks Get Green Light From Powell To Offer Crypto Services

• The Federal Reserve announced that the American interest rate will remain unchanged until next month
• Jerome Powell's statement on banks serving crypto customers has renewed interest in digital assets
• The new SEC under Trump lifted a rule prohibiting banks from offering crypto custody services

The United States Federal Reserve announced this Wednesday that the American interest rate will remain at its current level moving forward until the next meeting.

This was the first FOMC meeting under the new Presidency and already showed signs of a potential beef between Donald Trump and Jerome Powell. Only a couple of days earlier, the President pressured the Fed to cut interest rates, something Jerome Powell did not do—and you can read more about it here.

Initially, the cryptocurrency market tumbled after the news broke of no interest rate slashes in January. However, a specific statement by Jerome Powell has fueled renewed interest in digital assets.

When asked about this during today’s press conference, Jerome Powell admitted that the U.S. banking sector can serve cryptocurrency services to the public.

“Our role with crypto is to look at the banks,” Powell said. “We think banks are perfectly able to serve crypto customers, as long as they understand and manage the risks.”

Jerome Powell’s statement can be seen as great news for the digital assets industry, as the Fed is open to overseeing and regulating crypto services by U.S. banks. The news coincides with this week’s reports that the new SEC under Trump lifted a rule imposed by the previous administration that prohibited banks from offering crypto custody services. 

The United States appears to be on its way to becoming arguably the largest crypto-innovation hub in the world under the new government. Aside from these major developments—U.S. states are already on the move for allocating up to 10% of public funds in Bitcoin, another step towards the nation’s dreamed-of Strategic Bitcoin Reserve.

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