- Congressional action needed to establish comprehensive cryptocurrency regulatory framework to enhance market stability.
- Federal Reserve maintains current interest rates for cryptocurrency operations in the United States.
- Banks deemed capable of serving cryptocurrency customers while managing associated risks.
- New regulatory approach aims to integrate digital assets with traditional financial systems.
- Regulatory clarity expected to boost investor confidence and market participation.
Federal Reserve Chair Jerome Powell called for Congress to develop a comprehensive cryptocurrency regulatory framework, emphasizing the need for stronger investor protections in the rapidly evolving digital asset space. The announcement came during his recent address following the Federal Reserve’s decision to maintain current cryptocurrency interest rates.
Speaking at the Federal Open Market Committee (FOMC) press conference, Powell addressed the banking sector’s role in cryptocurrency services, stating:
“We’re not against innovation, and we certainly don’t want to take actions that would cause banks to terminate customers who are perfectly legal just because of excess risk aversion.”
The Federal Reserve’s position marks a significant shift in institutional approach to digital assets. Powell highlighted that banks possess the necessary capabilities to manage cryptocurrency-related risks, though operating under heightened regulatory scrutiny. This stance represents a departure from previous regulatory uncertainty that has historically limited institutional participation in the crypto sector.
Powell’s vision for regulatory reform includes creating parallels between cryptocurrency investments and traditional financial instruments like stocks and mutual funds.
“I think that would be a very constructive thing for Congress to do,” Powell remarked regarding the establishment of a more robust regulatory apparatus.
The regulatory push comes amid growing institutional interest in cryptocurrency services. Under Donald Trump‘s administration, which appointed Powell to his position, the regulatory landscape has evolved to create a more accommodating environment for digital assets.
The current focus includes promoting stablecoins—cryptocurrencies designed to maintain a stable value by pegging to traditional assets—as a central component of digital asset strategy.
Powell, whose term extends until May 2026, continues to advocate for a balanced approach that prioritizes systematic stability while fostering innovation in the cryptocurrency space. This regulatory evolution suggests a maturing market preparing for broader institutional adoption and increased integration with traditional financial systems.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- Bitcoin Surges Past $105K as Federal Reserve Holds Interest Rates Steady
- Hackers Target Major Sports Organization’s Social Media, Promote Fake Crypto
- Pudgy Penguins’ Abstract Layer-2 Network Sees Slow Start Despite User Incentives
- Bitcoin Surges Past $105K Following Fed’s Rate Pause Decision
- El Salvador Amends Bitcoin Law Following $1.4B IMF Deal, Making Crypto Payments Optional
