The post Just In: Jerome Powell Agrees to Work with Lawmakers to Address Crypto Debanking appeared first on Coinpedia Fintech News
In a bold move, Federal Reserve Chair Jerome Powell has called for a “fresh look” at debanking, following criticism that the crypto industry is being denied access to banking services.
Powell Agrees to Help End Crypto Debanking
During a Senate Banking Committee hearing on Tuesday, Tim Scott, the committee’s Chair, asked Jerome Powell if he would work together to ensure that financial regulations are fair and don’t impose unnecessary burdens, to which Powell agreed to collaborate with Tim Scott, stating that the Federal Reserve aims to avoid unnecessary burdens. Powell said that he is “struck” by the increasing number of Bitcoin and crypto firms being debanked.
He also emhasized that it’s important to re-evaluate the issue of debanking. “We don’t intentionally do these things, but sometimes regulation leads things to happen and we need to be working on that,” Powell added. Scott also asked Powell if he would commit to collaborating with lawmakers to end debanking, to which Powell agreed, saying “yes.”
Crypto debanking is once again a hot topic in Washington, with lawmakers holding hearings and launching investigations into the issue. Last week, both the House and Senate held two hearings to address the concern.
Fed Not In A Hurry To Cut Rates
Furthermore, Powell has emphasized that the US central bank is “in no hurry” to reduce interest rates, despite pressure from Donald Trump to lower borrowing costs in the world’s largest economy.
“With our policy stance now significantly less restrictive than it had been and the economy remaining strong, we do not need to be in a hurry to adjust our policy stance.” he noted.
This statement follows the Fed’s decision last month to keep the federal funds target range at 4.25-4.5%, after three consecutive rate cuts that lowered it by 1 percentage point. Most investors expect US rates to stay steady until around May or June this year. Furthermore, Powell also confirmed that the Fed will not create a Central Bank Digital Currency (CBDC) under his leadership.