FEDMeeting

“I do think it would be helpful if there were a greater regulatory apparatus around crypto,” the US central bank chair said at the Federal Open Market Committee press conference on Jan. 29. He added that it is something Congress and the Fed have been “working on quite a lot.”
“We’ve actually spent a lot of time, you know, with House Financial Services, working together with them on various things, and I think that would be a very constructive thing for Congress to do,” he said.
The comments came as the Federal Reserve maintained interest rates at 4.25% to 4.5% following last week’s CPI data that showed inflation was not as high as many anticipated.
Don’t Debank Crypto Customers
Powell also said the central bank was “not against innovation” with regard to cryptocurrencies.
Speaking about banking restrictions, he added, “We certainly don’t want to take actions that would cause banks to, you know, terminate customers who are perfectly legal just because of excess risk aversion, maybe related to regulation and supervision.”
Powell’s remarks at the first FOMC meeting under the Trump administration came as concerns about so-called “debanking” efforts have risen to the highest ranks of government.
“Banks are perfectly able to serve crypto customers, as long as they understand and can manage the risks, and it’s safe and sound,” Powell said before adding, “The threshold has been a little higher for banks engaging in crypto activities, and that’s because they’re so new.”
He noted that individual investors needed better protection as the risks may not be fully understood. He also compared crypto to stocks and mutual funds, saying that similar consumer safeguards should apply.
No Disagreements With Trump
The central bank chair has avoided responding directly to comments made or actions taken by Donald Trump in recent weeks. He said there has been “no contact” with the new president, noting that disagreements would undermine the Fed’s credibility.
“We stand ready to take appropriate action to support the smooth transmission of monetary policy, including adjusting the details of our approach for reducing the size of our balance sheet in light of economic and financial developments,” he said.
More economic data is expected this week, with fourth-quarter GDP Growth Annualized advance estimates due on Thursday and December’s Core Personal Consumption Expenditures (PCE) report due on Friday.
Crypto markets were up marginally during the Thursday morning Asian trading session, with Bitcoin leading the pack and reclaiming $105,000.
#BinanceAlphaAlert #FedHODL #FedMeeting

Jerome Powell, the Federal Reserve’s chief, has been explicit that U.S. banks can serve crypto customers, provided they know the risks and mitigate them. At a press conference on Wednesday, Powell said the Fed is not anti-innovation. Indeed, banks can completely work with crypto clients as long as they make sure their operations are secure, he said.
Powell also noted that because cryptocurrency is a relatively new asset class, it has more risks associated with it. But he also stressed that banks should not reject legal crypto customers out of fear or unnecessary caution. His comments come as concerns over “debanking” are rising, including and particularly the practice of shutting out certain industries, crypto among them, from the financial system.
Jerome Powell today: "banks are perfectly able to serve crypto customers as long as they understand and can manage the risks […] we're not against innovation, and we certainly don't want to take actions that would cause banks to terminate customers who are perfectly legal just…
These comments are seen as a reversal in the Fed’s policy and seem to have been welcomed by many in the crypto industry including the Chief Legal Officer of Coinbase. Powell said the Fed’s job is to make sure that banks engage with crypto with risk appetite but also the ability to serve their customers without unnecessary risk.
Banks must be prudent in their dealing with crypto given that digital assets are constantly changing, but they are free to provide services as long as they properly handle the associated risks much like how they have done in every other industry.
Powell’s comments come after documents were released showing agencies such as the FDIC had in the past discouraged banks from providing crypto services. Now, it appears, that the Fed is adopting a much less tight attitude, as long as financial entities can deliver the goods safely.
#FedHODL #BinanceAlphaAlert #FedMeeting

Bitcoin reached a new milestone of $105,000 on Thursday following the Federal Reserve's latest policy meeting, where Chair Jerome Powell confirmed that US banks can provide services to cryptocurrency clients. The price surge came after a brief dip to $101,800 on Wednesday, putting the leading cryptocurrency just 4% below its recent record high of $109,241.
The Federal Reserve maintained its benchmark interest rate at the target range of 4.25% to 4.50% during the Federal Open Market Committee meeting. This decision aligned with market expectations, and traders are now predicting an 82% chance that rates will remain unchanged at the next policy meeting in March. The central bank's stance follows last year's rate cuts, which reduced the federal funds rate by 100 basis points.
During the post-meeting press conference, Powell stated that banks under Federal Reserve supervision can work with cryptocurrency customers if they properly manage associated risks. He stressed the importance of maintaining "safe and sound" practices in these operations. This statement provided clarity on the regulatory environment for traditional financial institutions looking to engage with digital assets.
The cryptocurrency market showed broad strength, with Ethereum rising 2.5% to $3,210 and Solana gaining 3.7% to reach $240. These gains occurred despite recent pressure on technology stocks, with companies like Nvidia and Microsoft experiencing declines following news about Chinese AI developments. The broader market saw the Nasdaq temporarily drop more than 1% after the Fed's announcement.
Powell addressed the current economic situation, noting that while inflation has decreased significantly from its 2022 peak of 9.1% to 2.9% annually, uncertainty remains about future rate adjustments. This cautious approach to monetary policy continues to influence market dynamics across various asset classes.
In a related development, Czech National Bank Governor Aleš Michl announced plans to propose adding bitcoin to the nation's central bank reserves. While confirming the proposal on social media, Michl explained that more analysis would be needed before any final decision. The bank is already diversifying its reserves by increasing gold holdings to 5% and planning to allocate 30% to equities, with bitcoin being considered as a potential addition due to its lack of correlation with bonds.
#FedHODL #FedMeeting #US #BankOfAmerica