Federal Reserve Chair Jerome Powell said this week that the crypto industry is becoming more “mainstream” and expects banks to increase their engagement with the sector. He made the remarks while responding to questions during House and Senate committee hearings.
The Trump administration’s embrace of digital assets has prompted banking regulators to adopt a more accommodating stance toward the sector. In April, the Federal Reserve withdrew four crypto related advisories, and earlier this week it announced that reputational risk should no longer be part of bank supervision procedures. Republicans had accused banking regulators of using reputation as a tool to debank crypto firms and other groups.
While Republican lawmakers welcomed the policy shifts, they questioned what prompted the changes.
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