Jerome Powell Confirms US Banks Can Serve Crypto Clients, Sparks 2.7% Bitcoin Surge

Federal Reserve Chair Jerome Powell Jerome Powell   Jerome Powell is a U.S.-based fintech specialist and the current head of the U.S. Federal Reserve. He was named the 2020 Forbes Person of the Year in Crypto award as a result of the high price gains in cryptocurrencies.   He has neither supported nor downvoted the concept of cryptocurrency adoption in the country. However, his expertise mainly talks about formulating fair and friendly crypto polices in the country.   Quick Facts   Full name Jerome Hayden "Jay" Powell Birth 04-02-1953, Washington, D.C., United States Nationality American Education Georgetown University Law Center Known for Banking Expert   Jerome Powell - Career Highlights & Events   2018: He was designated head of the Federal Reserve.   2021: Stressed the need for strict regulation while acknowledging the potential of stablecoins.   2022: Research on the economic impact of U.S. CBDC was initiated.     Finance recently confirmed that U.S. banks are allowed to offer services to cryptocurrency customers. This announcement has generated excitement, especially in the Bitcoin market. Over the past 24 hours, Bitcoin has risen by 2.7%, reflecting a positive market reaction.

Here’s everything you need to know about this important development.

No Restrictions for Banks Serving Crypto Clients

Powell’s statement cleared up confusion about whether U.S. banks can legally offer services to cryptocurrency users. He made it clear that there are no restrictions preventing banks from providing these services. This reassures both financial institutions and cryptocurrency users.

However, Powell also warned that banks must understand and manage the risks involved with cryptocurrencies. While the opportunity for banks to serve crypto clients is open, it’s important that they take the necessary precautions to handle potential risks.

Crypto Markets React

The cryptocurrency community has warmly welcomed Powell’s statement, and the response from major cryptocurrencies reflects this. In the last 24 hours, the entire crypto market saw a 1.3% rise. Bitcoin, in particular, surged by 2.7%, showing the market’s positive sentiment.

Bitcoin Price Performance: January Overview

Bitcoin’s market has experienced significant ups and downs this month. At the start of January, it was valued at $93,636. On January 6, it reached $102,230.78, but between January 7 and 9, Bitcoin saw a correction of 9.34%.

By January 17, Bitcoin recovered, and on January 20, it hit a monthly high of $109,735.24. Currently, Bitcoin is valued at $105,200, about 4.31% lower than its peak.

The positive momentum isn’t just limited to Bitcoin. Other major cryptocurrencies have also experienced notable gains in the past 24 hours. Ethereum is up by 1.7%, Solana has increased by 3.3%, Cardano by 1.5%, TRON by 1.2%, and Chainlink by 4.8%

Jerome Powell’s confirmation that U.S. banks can serve crypto clients has sparked a wave of optimism across the market. This development signals more regulatory clarity and growing confidence in the cryptocurrency sector.