Fed Chair Jerome Powell: Banks Can Embrace Crypto

“We are not against innovation,” Powell said, signaling a shift toward embracing the evolving crypto landscape.

Last week, the SEC took a bold step by officially repealing SAB 121. It is a regulation that previously prevented banks from holding Bitcoin in custody. With this change, banks are now allowed to hold Bitcoin. It will provide another layer of legitimacy to the growing crypto market.

For crypto enthusiasts, this is a step in the right direction. It’s like having the green light to go ahead. Knowing that traditional banks are now in a position to securely hold and manage digital assets. As Powell’s statement emphasizes, banks simply need to manage the risks associated with crypto. A sentiment that aligns with the SEC’s recent action.

Jerome Powell’s last question today was about crypto…

KEY QUOTES:
“Banks are perfectly able to serve crypto customers.”

“We’re not against innovation.”

“That (crypto regulation) would be a constructive thing for congress to do.”

Thoughts? pic.twitter.com/PEAkonBWqq

— Aj (@Ajwritescrypto) January 29, 2025

This development could lead to more banks offering crypto-related services. From holding Bitcoin to facilitate transactions. The tide is turning. And crypto might not be as much of a “wild west” as it once seemed.

More about the Crypto Regulation

Norway’s Central Bank revealed that its sovereign wealth fund holds $500 million worth of shares in MicroStrategy , the largest corporate holder of Bitcoin. This investment reflects the country’s growing interest in cryptocurrency exposure through established companies with significant Bitcoin holdings.

JUST IN: 🇳🇴 Norway’s Central Bank’s fund reveals owning $500 million of MicroStrategy shares. pic.twitter.com/FiFzxJcIOg

— Bitcoin Magazine (@BitcoinMagazine) January 30, 2025

The move highlights a shift in institutional investment strategies, as traditional financial entities explore the crypto space through companies like MicroStrategy.

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