Federal Reserve Greenlights Banks for Crypto Services, Powell Confirms

Federal Reserve Chair Jerome Powell has granted U.S. banks explicit authority to engage in cryptocurrency-related activities, marking a pivotal shift in regulatory posture. During Tuesday's House Financial Services Committee hearing, Powell emphasized that institutions may now develop tailored banking services for crypto firms and investors—provided they maintain safety and soundness protocols.

The MOVE follows the Fed's elimination of reputational risk from bank examinations, aligning with recent actions by the OCC and FDIC. Banking executives had criticized the previous standard as a subjective deterrent to lawful crypto ventures. This regulatory recalibration signals growing institutional acceptance of digital assets, potentially accelerating mainstream crypto adoption.