Fed Chair Powell Expresses Concerns Over Crypto Industry Debanking Issues

Federal Reserve Chairman Jerome Powell expressed concerns about the "debanking" trend affecting the crypto industry during a Senate Banking Committee hearing. Key points from his testimony include:

Powell acknowledged growing reports of banks being risk-averse regarding customers linked to potential money-laundering violations.
The Fed is revising internal supervision policies in response to these issues.
Powell mentioned that a policy directing increased scrutiny on bankers engaging in controversial activities is being removed.
Regarding stablecoins, Powell supports regulatory frameworks to ensure their safe development for consumers and businesses.
He confirmed he would not support launching a central bank digital currency (CBDC) in the U.S.

Powell's remarks coincide with ongoing scrutiny from Republican lawmakers about the previous administration's handling of banking regulations impacting crypto. He will address further crypto topics in upcoming hearings.

In related economic commentary, Powell stated that current monetary policy rates are satisfactory, emphasizing a cautious approach towards future reductions. Bitcoin has shown a decline of 2.35% within the past 24 hours, trading at $95,140.