On June 24, Federal Reserve Chairman Jerome Powell told the U.S. Congress that banks may engage with cryptocurrency technologies and companies, provided they adhere to existing regulatory frameworks aimed at safeguarding financial stability and consumer interests.

“Banks decide who their customers are. That’s not our decision,” Powell stated during his semiannual testimony on monetary policy.

He also highlighted a noticeable shift in the financial sector’s stance on digital assets, describing it as an “evolution of thinking” and a sign of the maturing crypto industry.

His remarks followed the Fed’s recent decision to remove the concept of "reputational risk" from its bank supervision guidelines. This move could facilitate access to banking services for crypto companies, which some, like pro-crypto Senator Cynthia Lummis, have argued were unfairly restricted by the previous policy.

Powell further expressed support for ongoing legislative developments surrounding digital assets. He welcomed progress on bills such as the GENIUS Act — aimed at regulating stablecoins — which was recently passed by the U.S. Senate with bipartisan backing.

Another key bill, the CLARITY Act, currently under review in the House of Representatives, seeks to clearly define the roles of federal regulators, including the SEC and CFTC, in overseeing the digital asset market.

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