Jerome Powell

Chair

Read

Reserve

<div class="key-points-section"><strong>Key Points:</strong>
 <ul>
  <li>Fed permits banks to offer crypto services, boosting market confidence.</li>
  <li>Institutional crypto involvement expected to increase significantly.</li>
  <li>Previous regulatory barriers for banks in crypto services lifted.</li>
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  Fed Policy Change: U.S. Banks Cleared to Offer Crypto Services
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<p>On June 24, 2025, Federal Reserve Chair Jerome Powell announced that U.S. banks are now free to offer services to the cryptocurrency industry, during hearings before Senate and House committees.</p>
<p>This decision removes prior regulatory uncertainty, encouraging institutional investment in crypto assets like Bitcoin and Ethereum, which saw immediate market gains, signaling increased confidence from investors.</p>
<h2 id="fed-chair-authorizes-u-s-banks-to-serve-crypto-sector">Fed Chair Authorizes U.S. Banks to Serve Crypto Sector</h2>
<p><strong>U.S. banks</strong> have been granted the freedom to provide services to the cryptocurrency industry. Federal Reserve Chair Jerome Powell announced this policy shift, marking a significant regulatory change in favor of institutional crypto engagement.</p>
<blockquote>
 Jerome Powell, Chairman, Federal Reserve, - "Banks are free to provide banking services to the cryptocurrency industry," emphasizing the absence of Fed-imposed legal barriers and pointing to a matured regulatory understanding. <a href="https://www.ainvest.com/news/banks-cleared-offer-crypto-services-fed-eases-rules-2508/" rel="noopener noreferrer nofollow">source</a>
</blockquote>
<p>During a congress session, Chair Powell outlined that banks are free from regulatory hurdles in offering crypto services. This decision comes amid maturing regulations, allowing banks and fintechs to establish new partnerships. For more insight into these developments, refer to the <a href="https://www.arnoldporter.com/en/perspectives/advisories/2025/04/fed-approach-to-bank-permissible-crypto-asset-activities" rel="noopener noreferrer nofollow">Federal Reserve's stance on permissible crypto asset activities</a>.</p>
<p>Following the announcement, <strong>key cryptocurrencies</strong> like Bitcoin and Ethereum experienced immediate market gains. The Fed's stance is anticipated to catalyze broader adoption and innovation within the sector.</p>
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<p>The enhanced regulatory clarity is expected to encourage further <strong>institutional investment</strong> in crypto assets. It also aligns with federal objectives to position the U.S. as a pivotal player in the digital currency domain, as supported by <a href="https://www.paulhastings.com/insights/crypto-policy-tracker/crypto-policy-heats-up-ahead-of-july-4" rel="noopener noreferrer nofollow">Crypto policy updates ahead of July 4 celebrations</a>.</p>
<p>Major banks are likely to capitalize on the opportunity to integrate cryptocurrency services. Analysts foresee new collaborations between financial institutions and emerging crypto firms.</p>
<p>For information on the potential for crypto market expansion, visit <a href="https://phemex.com/news/article/phemex-crypto-market-daily-fed-rate-cut-looms-as-crypto-markets-react-sep-05-17711" rel="noopener noreferrer nofollow">Phemex's perspective on Federal Reserve rate cuts and crypto markets</a>.</p>
<p>Historical trends suggest regulatory easing leads to market expansion. The Fed's policy change could stimulate increased liquidity in compliant DeFi platforms, fostering a more robust financial ecosystem.</p>
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    <td><em><strong>Disclaimer:</strong></em><br><em><br>The content on <a href="https://theccpress.com/" rel="noopener noreferrer nofollow">The CCPress</a> is provided for informational purposes only and should not be considered financial or investment advice. Cryptocurrency investments carry inherent risks. Please consult a qualified financial advisor before making any investment decisions.</em></td>
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Fed Chair Authorizes U.S. Banks to Serve Crypto Sector

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