Powell expresses concern over crypto debanking and signals a possible regulatory shift.
Fed remains skeptical of stablecoins and firmly opposes issuing a U.S. CBDC.
Federal Reserve Chairman Jerome Powell has voiced concerns over the increasing reports of ‘debanking’ in the crypto industry, stating that he is troubled by the trend and is taking steps to address it. During a Senate Banking Committee hearing, Powell acknowledged that banks are increasingly cutting ties with crypto-related businesses due to risk aversion and stringent anti-money laundering regulations.
A recent CNF post highlighted that Powell remains cautious on crypto, stating that the Fed cannot own Bitcoin unless laws change. However, Powell assured lawmakers that the Fed is revisiting its internal supervision policies to prevent excessive de-risking.
As reported in an FT updates, he stated in a routine testimony before the Senate Banking Committee:
I am troubled by the quantity of these reports, and it is fai
