Fed Chair Jerome Powell Gives Crypto a Thumbs Up

Jerome Powell is cool with banks serving crypto customers, as long as they manage the risks.
Industry insiders see his statement as a ‘shift’ from the Biden administration.

In a move that’s got the crypto world buzzing, Fed Chair Jerome Powell has signaled a likely U-turn from the infamous crypto de-banking. This is the kind of plot twist we’d expect from a Tina Fey movie, am I right? 😉

Dubbed ‘Operation ChokePoint 2.0 (OCP 2.0)’, the reported wide-scale banking access restriction against crypto firms caught the attention of the new Trump administration and formed a formal inquiry. But fear not, crypto fans!

During the Wednesday presser, Powell clarified that banks can now serve crypto customers under proper risk protection. He said, “Banks are perfectly able to serve crypto customers as long as they understand and can manage the risks […] we’re not against innovation.”

A new dawn for crypto users?

Nic Carter, co-founder at Castle Island Ventures and one of the prominent people who covered the OCP 2.0, has always pinned the Fed as the force behind the massive de-banking in the sector. But guess what? The recent Powell statement has made him believe that the restriction was over. He said, “Immense tonal shift. OCP2.0 is over.”

For perspective, in a recent ‘Joe Reagan Experience’ interview, a16z co-founder Marc Andreessen claimed that 30 tech founders were de-banked over the past four years. But with this new development, it’s like the sun is finally shining on the crypto community! 😎

James Comer, the Chairman of the House Committee on Oversight and Government Reform, is investigating the matter. As such, the shift relieves most of the previously sidelined tech startup ecosystem, including crypto. 🎉

Coinbase’s Chief Legal Officer, Paul Grewal, also called Powell’s statement a ‘change’ from the last administration. He said, “What I hear Jay Powell saying is: banks are now free to manage any risks from crypto, just like they manage any risks from any other industry. What a change from the last four years.”

And if that wasn’t enough, the infamous SEC accounting guidance SAB 121, which restricted the inclusion of crypto assets in firms’ financial statements, was also recently rescinded. Collectively, these positive updates could drive more crypto adoption in the US. 🚀

2025-01-31 02:18

A new dawn for crypto users?

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