Fed Chair Jerome Powell Says US Banks ‘Perfectly Able’ to Serve Crypto Customers

The Federal Reserve signaled Wednesday that servicing the cryptosphere shouldn’t be off-limits for U.S. banks, whether that involves catering to customers or pioneering new services. Fed Chair Jerome Powell said during a Wednesday press conference that the U.S. central bank is “not against innovation,” and that “banks are perfectly able to serve crypto customers, as long as they understand and can manage the risks.

A good number of our banks that we regulate and supervise do that,” Powell continued. “The threshold has been a little higher for banks engaging in crypto activities.” Powell’s remarks came days after the House of Representatives officially began investigating a plot dubbed “Operation Choke Point 2.0.” His comments were made in response to a reporter asking whether speculation in an unregulated asset class could hurt American households.

The term for the purported plot, which borrows its name from an Obama-era initiative, was popularized by Nic Carter, a partner at Castle Island Ventures. In a post on X, Carter described Powell’s comments as an “immense shift,” essentially bringing an end to said plot. Coinbase’s Chief Legal Officer Paul Grewal likewise told Decrypt in an email that Powell’s comments were refreshing. “What a change from the last four years,” he said. “What I hear Jay Powell saying is: Banks are now free to manage any risks from crypto, just like they manage any risks from any other industry.”