Federal Reserve Chair Powell Discusses Cryptocurrency Services

According to PANews, Federal Reserve Chair Jerome Powell addressed the topic of cryptocurrency during a press conference following the announcement to maintain interest rates. Powell stated that banks can offer cryptocurrency services to customers as long as it is done in a safe and sound manner. He emphasized that the Federal Reserve is not opposed to innovation and does not want regulatory measures to lead to excessive risk aversion, which could result in banks terminating services to entirely legitimate customers. In line with a court order, the U.S. Federal Deposit Insurance Corporation (FDIC) recently released several letters highlighting the stringent scrutiny banks face when providing cryptocurrency services to clients. In many instances, banks have been instructed to halt these services and have not received approval to proceed.