{"id":10432,"date":"2025-01-30T07:33:02","date_gmt":"2025-01-30T07:33:02","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=10432"},"modified":"2025-01-30T07:33:02","modified_gmt":"2025-01-30T07:33:02","slug":"fed-chair-calls-for-crypto-regulation-warns-banks-against-excess-risk-aversion","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=10432","title":{"rendered":"Fed Chair Calls for Crypto Regulation, Warns Banks Against \u2018Excess Risk Aversion\u2019"},"content":{"rendered":"
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\u201cI do think it would be helpful if there were a greater regulatory apparatus around crypto,\u201d the US central bank chair said at the Federal Open Market Committee press conference on Jan. 29.\u00a0He added that it is something Congress and the Fed have been \u201cworking on quite a lot.\u201d<\/p>\n

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\u201cWe\u2019ve 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,\u201d he said.<\/p>\n<\/blockquote>\n

The comments<\/a> came as the Federal Reserve maintained<\/a> interest rates at 4.25% to 4.5% following last week\u2019s CPI data that showed inflation was not as high as many anticipated.<\/p>\n

Don\u2019t Debank Crypto Customers<\/h2>\n

Powell also said the central bank was \u201cnot against innovation\u201d with regard to cryptocurrencies.<\/p>\n

Speaking about banking restrictions, he added, \u201cWe certainly don\u2019t 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.\u201d<\/p>\n

Powell\u2019s remarks at the first FOMC meeting<\/a> under the Trump administration came as concerns about so-called \u201cdebanking\u201d efforts have risen to the highest ranks of government.<\/p>\n

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\u201cBanks are perfectly able to serve crypto customers, as long as they understand and can manage the risks, and it\u2019s safe and sound,\u201d Powell said before adding, \u201cThe threshold has been a little higher for banks engaging in crypto activities, and that\u2019s because they\u2019re so new.\u201d<\/p>\n<\/blockquote>\n

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.<\/p>\n

No Disagreements With Trump<\/h2>\n

The central bank chair has avoided responding directly to comments made or actions taken by Donald Trump in recent weeks.\u00a0He said there has been \u201cno contact\u201d with the new president, noting that disagreements would undermine the Fed\u2019s credibility.<\/p>\n

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\u201cWe 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,\u201d he said.<\/p>\n<\/blockquote>\n

More economic data<\/a> is expected this week, with fourth-quarter GDP Growth Annualized advance estimates due on Thursday and December\u2019s Core Personal Consumption Expenditures (PCE) report due on Friday.<\/p>\n

Crypto markets were up marginally during the Thursday morning Asian trading session, with Bitcoin leading the pack and reclaiming $105,000.<\/p>\n

The post Fed Chair Calls for Crypto Regulation, Warns Banks Against \u2018Excess Risk Aversion\u2019<\/a> appeared first on CryptoPotato<\/a>.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

\u201cI do think it would be helpful if there were a greater regulatory apparatus around crypto,\u201d the US central bank chair said at the Federal Open Market Committee press conference on Jan. 29.\u00a0He added that it is something Congress and the Fed have been \u201cworking on quite a lot.\u201d \u201cWe\u2019ve actually spent a lot of […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-10432","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/10432","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10432"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/10432\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10432"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10432"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10432"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}