Fed Chair Powell: Banks Can Serve Crypto Clients, Bitcoin Surges 3%

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In a significant development for the cryptocurrency market， Federal Reserve Chair Jerome Powell made groundbreaking comments during the recent Federal Open Market Committee (FOMC) meeting that could reshape the banking landscape for digital assets.

Powell’s key statement emphasized that U.S. banks are ‘perfectly able’ to serve crypto customers， provided they adhere to proper risk disclosure requirements. This announcement effectively addressed growing concerns about potential ‘de-banking’ of legally compliant crypto businesses and investors， signaling a more open regulatory approach toward digital currencies.

The cryptocurrency markets responded immediately to Powell’s remarks. Bitcoin， the leading cryptocurrency， experienced a notable surge， gaining 3% and climbing above $103，500 during the U.S. evening trading session. This positive movement came after an initially muted reaction to the Fed’s decision to maintain interest rates between 4.25% and 4.50%.

Beyond the immediate market reaction， Powell’s comments carry broader implications for the crypto industry. By explicitly stating that banks can serve crypto clients， the Fed is sending a clear signal of potential mainstream acceptance. The chair also noted that ‘great regulation on crypto would be helpful’， suggesting a balanced approach to digital asset integration.

Interestingly， Powell reiterated that the U.S. central bank cannot legally hold Bitcoin， which prompted Senator Cynthia Lummis to propose potential legal modifications. This highlights the ongoing dialogue about cryptocurrency’s role in the traditional financial ecosystem.

Market sentiment remains divided. Crypto bulls are optimistic， pointing to historical February performance—where Bitcoin has surged in eight of the last twelve years. They also speculate that potential pro-crypto stances， such as those rumored from former President Trump， could provide additional market support.

Conversely， market bears argue that static interest rates might discourage new capital inflows into Bitcoin and related financial products， including the recently launched spot Bitcoin ETFs. This tension between bullish and bearish perspectives underscores the volatile nature of the cryptocurrency market.

Powell’s statements represent a significant moment for cryptocurrency regulation and mainstream financial integration. By providing clarity and suggesting a cooperative approach， the Fed is potentially paving the way for greater institutional involvement in digital assets.

As the cryptocurrency landscape continues to evolve， investors and industry observers will be closely watching how banks and financial institutions respond to this newfound regulatory openness. The intersection of traditional banking and digital currencies remains a dynamic and rapidly changing frontier.