Federal Reserve Chair Jerome Powell has confirmed that U.S. banks are now permitted to provide services to the Bitcoin and broader cryptocurrency industry. The announcement marks a major regulatory green light that could significantly reshape the relationship between traditional finance and digital assets.
Speaking on Tuesday, Powell stated that banks are no longer restricted from engaging with crypto-related businesses, as long as they comply with existing financial regulations. The move is being hailed by industry leaders as a major breakthrough that could unlock institutional growth and foster greater mainstream adoption of cryptocurrencies.
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“Banks are now free to provide services to the Bitcoin and crypto industry,” Powell said, signaling a policy change that could pave the way for everything from crypto custody and payments to lending and trading infrastructure.
The statement comes amid a broader trend of increased clarity around digital asset regulation in the United States. It follows growing pressure from crypto advocates and financial institutions alike, who have long called for a consistent regulatory framework that allows innovation to thrive without compromising financial stability.
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