FED chair Powell calls for stronger crypto regulations

Federal Reserve Governor Jerome Powell has called for stronger regulations on cryptocurrencies, stating that the US central bank and Congress have been actively working on the issue. Speaking at the Federal Open Market Committee meeting, he emphasised the need for a clearer regulatory framework while assuring that the Fed is not opposed to innovation in the sector.

Powell also addressed concerns over ‘debanking’ practices, stating that banks should not be forced to cut ties with legal crypto firms due to excessive risk aversion. He stressed that financial institutions are free to serve crypto customers as long as they can manage the associated risks. While acknowledging that regulatory standards for crypto activities are higher due to their novelty, he suggested that consumer protections similar to those in traditional finance should apply.

Avoiding direct engagement with recent comments from President Trump, Powell reaffirmed the Fed’s commitment to economic stability. He noted that the central bank is prepared to adjust its monetary policy as needed. Meanwhile, Bitcoin saw modest gains, reclaiming $105,000 in Asian trading hours.