Federal Reserve Chair Jerome Powell has shown that it may be time to reevaluate banking regulations amid growing concerns that the cryptocurrency sector is being unfairly excluded from financial services.
Powell’s comments came at a hearing of the Senate Banking Committee today.
During the hearing, committee chair Tim Scott asked Powell whether financial regulations would put an excessive burden on businesses and whether lawmakers would commit to working together to deal with potential overreach. I did.
“I’ve committed to working with you on this and I’m trying to avoid going too far,” Powell replied. “Frankly, I think it’s fair to see it take off.”
Powell acknowledged that regulatory measures are not intended to isolate industries, but sometimes unintended consequences arise. “We don’t do these things intentionally, but sometimes things can happen due to regulations and we need to tackle that,” he added.
Scott also urged Powell to work with lawmakers to end the de-canking, and Powell reaffirmed her commitment to it.
The issue of code-related decanking has returned to Washington’s agenda. There, lawmakers have held many hearings and investigations on the issue. Both the House and Senate recently held hearings focused on crypto companies being affected by bank restrictions.
Last year, Coinbase escalated the issue by filing a lawsuit against the Federal Deposit Insurance Corporation (FDIC), through consulting firm History Associates, claiming that the institution intentionally blocks the crypto industry from financial services. Masu.
Powell previously said that banks are permitted to provide services to crypto clients as long as they effectively manage the risks involved.
*This is not investment advice.
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