Jerome Powell of the Federal Reserve stated that banks may use cryptocurrency as long they can manage their risks.
During his speech following the Federal Open Market Committee (FOMC) meeting, Powell added:
“The threshold has been a little higher for banks engaging in crypto activities, and that’s because they’re so new.”
Powell stressed that despite the Fed’s cautious approach it remains open to innovations in financial markets.
Moreover, Fed chairman quickly responded to allegations that crypto-firms are having difficulty accessing US banking service, and stated that the Fed does not wish to lose legal customers.
Powell added that the Fed’s role in examining the relationship between banks and crypto is to analyze banks. Powell also acknowledged the industry’s regulatory challenges and said “a greater regulatory apparatus”Would be very helpful.
Despite not endorsing crypto, the Fed chair’s brief mention led to optimism in the market, causing many assets to rally after the day’s slump.
Bitcoin (BTC), after FOMC announced no interest rate reductions this month and possibly delaying further cuts until next June, dropped 1.5% to $100,417.24. However, during Powell’s speech, especially after the mention of crypto, the BTC price rebounded 3.3% to touch $104,774.44.
As of press time, CryptoSlate shows that the top crypto traded at $103,740.
The tone shift
The Fed chair’s speech comes nearly three weeks after the Federal Deposit Insurance Corporation (FDIC) interim Chair Travis Hill You can also read about the importance of this in our article. The role of the Agency “debanking” Crypto companies.
Hill does not refer to the term “Operation Chokepoint 2.0,” He cited businesses related to crypto losing their access to banking without reason, calling these efforts “unacceptable.”
Operation Chokepoint 2.0 was allegedly an effort of Joe Biden’s former administration to hinder crypto industry development in the US, by making access to banking services more difficult.
Hill promised that the FDIC would change its course in future and not allow banks to sideline crypto companies.
The House Committee on Oversight and Government Reform also investigates the allegations of debanking crypto companies.
The Committee met on Jan. 24. Sending a formal correspondence To several crypto-related entities, requesting proof and reports of these cases.
Bitcoin Market Data
The time of the press On Jan. 29, 2020, 10:27 PM UTCBitcoin’s market capitalization is the highest in the world. You can also check out our Facebook page. 2.98% Over the past 24 hour. Bitcoin’s market capitalization is 2.05 trillion dollars With a daily trading volume of $47.32 billion. Learn more about Bitcoin ›
Bitcoin
On Jan. 29, 2020, 10:27 PM UTC
$103,656.40
2.98% Crypto Market Analysis
The time of the press On Jan. 29, 2020, 10:27 PM UTCThe total market value of crypto is at 3.51 trillion dollars A 24-hour volume is $122.93 billion. Bitcoin is the dominant currency at this time. 58.53%. Learn more about the crypto market ›
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