Key Takeaways
- Powell stated banks can serve Bitcoin customers if risks are managed.
- He emphasized the need for safety and soundness in bank involvement.
- Powell supports clearer Bitcoin regulations from Congress.
During a press conference, Powell addressed concerns about Bitcoin in the financial system, emphasizing the Federal Reserve’s role in overseeing banks rather than restricting Bitcoin-related activities.
Powell stated:
We think banks are perfectly able to serve Bitcoin customers as long as they understand and can manage the risks, ensuring safety and soundness.
He acknowledged that several regulated banks already work with Bitcoin-related clients but stressed that due to the evolving nature of the space, the bar for banks conducting such activities remains high.
Risk management requirements
He explained:
If you’re choosing to conduct those activities inside a bank—which is within the federal safety net and has deposit insurance—you need to be pretty sure that it’s a safe and sound activity.
Consumer Protection & Education
Powell also addressed broader concerns about Bitcoin speculation and household financial well-being, noting that while it is not the Fed’s role to dictate personal investment choices, consumer education remains important.
He pointed to existing securities laws and investment disclosures as tools to help individuals understand financial risks.
Regulatory Outlook
Finally, Powell expressed support for clearer regulations, highlighting ongoing discussions in Congress.
He noted, emphasizing that legislative clarity would be a “constructive step”:
I do think it would be helpful if there were a greater regulatory framework around Bitcoin. Congress has been working on this quite a lot.
