The Fed Gives A Positive Signal, US Bank May Open Cryptocurrency Services

JAKARTA - The Federal Reserve (US Central Bank) recently gave a positive signal to the cryptocurrency sector. Fed chairman Jerome Powell stated that US banks are allowed to provide crypto services to customers, as long as they can understand and manage the risks well.

Powell insists that although risks associated with crypto services may be higher, this does not mean this sector should be avoided by financial institutions. "The risks associated with crypto services may be higher, but this does not mean this sector should be avoided," Powell said.

Powell's statement comes days after the US House of Representatives began investigating allegations of "debanking" or termination of financial ties against crypto companies during the Biden administration.

This action is referred to as "Operation Choke Point 2.0", which aims to investigate whether certain crypto companies and individuals are intentionally removed from the financial system due to their involvement in the crypto industry.

Powell revealed that while crypto services are more risky, banks should not close their access to legitimate sectors just because of fear of excessive risks, which are sometimes closely related to strict regulations.

In recent years, speculation about efforts to isolate the crypto industry has intensified, especially after strict new arrangements were imposed by financial regulatory agencies such as the SEC and the FDIC. However, Powell stated that with the right risk management, banks could manage their engagement with this sector without putting themselves in danger.

This change in attitude received a positive response from various parties, including from Coinbase, which stated that Powell's statement provided fresh air to the future of the crypto sector which is starting to integrate with traditional financial systems.