Powell: Banks Can Serve Crypto Industry

The Breakdown

Nathaniel Whittemore

Investing, Business

4.8 • 786 Ratings

🗓️ 31 January 2025

⏱️ 17 minutes

🔗️ Recording | iTunes | RSS

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Summary

It might have been the world's most predictable Fed meeting when it came to interest rates, but there was a decided shift in tone from Fed Chair Jerome Powell when it came to the Fed's stance on crypto and the banks. Sponsored by: Ledn Need liquidity without selling your Bitcoin? For 6+ years, Ledn has been the trusted choice for Bitcoin-backed lending. With transparency, security, and trust at our core, we help you access your BTC’s wealth while HODLing. Discover what your Bitcoin can do at ledn.io/borrowing. Ledger Ledger, the world leader in digital asset security, proudly sponsors The Breakdown podcast. Celebrating 10 years of protecting over 20% of the world’s crypto, Ledger ensures the security of your assets. For the best self-custody solution in the space, buy a LEDGER™ device and secure your crypto today.Buy now on Ledger.com. Enjoying this content? SUBSCRIBE to the Podcast: https://pod.link/1438693620 Watch on YouTube: https://www.youtube.com/nathanielwhittemorecrypto Subscribe to the newsletter: https://breakdown.beehiiv.com/ Join the discussion: https://discord.gg/VrKRrfKCz8 Follow on Twitter: NLW: https://twitter.com/nlw Breakdown: https://twitter.com/BreakdownNLW

Transcript

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0:00.0	Welcome back to The Breakdown with me, NLW.
0:09.3	It's a daily podcast on macro, Bitcoin, and the big picture power shifts remaking our world.
0:18.3	What's going on, guys? It is Thursday, January 30th, and today we are talking about how the Fed chair has said that banks can serve crypto customers.
0:26.9	Before we get into that, however, if you are enjoying the breakdown, please go subscribe to it.
0:30.5	Give it a rating, give it a review, or if you want to dive deeper into the conversation, come join us on the Breakers Discord.
0:35.8	You can find a link in the show notes or go to bit.ly slash breakdown. All right, friends, well, yesterday was possibly the most
0:42.6	nothing burger Fed meeting in several years when it comes to monetary policy. Powell held
0:47.9	rate steady beginning what could be a lengthy Fed pause. Guidance was minimal as the Fed moves to
0:52.9	a data-dependent wait-and-see mode. But when it comes to
0:55.6	the narrative battles currently underway in Washington, this press conference was filled with big
1:00.1	signals of change. Let's start, obviously, with Powell's comments on crypto and the first official
1:05.2	sign that Operation Chokepoint 2.0 has come to an end at the Fed. Powell said,
1:10.5	Our role with crypto is really to look at the banks.
1:13.2	Banks are perfectly able to serve crypto customers as long as they understand and can
1:17.0	manage the risks to safety and soundness.
1:19.4	A good number of our banks that we regulate and supervise do that.
1:22.5	We're not against innovation, and we certainly don't want to take actions that would cause
1:25.6	banks to terminate customers who are perfectly legal, maybe related to regulation and supervision. This is pretty much as
1:31.7	close as we've come to acknowledgement from a banking regulator that something was going on,
1:36.2	and it's certainly the first official statement on crypto risk in several years. For Nick Carter,
1:40.7	it was good enough. He tweeted, immense tonal shift, OCP 2.0 over. This is particularly
1:46.8	notable because my understanding is that the Fed specifically was the nexus of OCP 2.0. Some extra
	...

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