"Bitcoin Surges Past $105K as Powell Welcomes Banks to Crypto"

Bitcoin (BTC) Price Maintains Bullish Momentum at $105,000 After Fed Chair Powell's Comments

Bitcoin (BTC) price has maintained its bullish momentum, trading above $105,000 following Federal Reserve Chair Jerome Powell's comments on banks serving cryptocurrency customers. Powell's statement, made during a press conference, has been well-received by the crypto community, with Bitcoin's price reacting positively to the news.

Powell emphasized that banks are fully entitled to provide services to cryptocurrency customers, provided they effectively navigate the inherent challenges and risks associated with digital assets. His remarks came in conjunction with the Federal Reserve's decision to keep interest rates steady, reinforcing the stability of the financial environment.

The Securities and Exchange Commission (SEC) has recently taken a significant step by repealing Staff Accounting Bulletin (SAB) 121. This regulation had previously discouraged banks from offering cryptocurrency custody services due to stringent accounting requirements. The new guidelines under SAB 122 enable banks to more seamlessly participate in the digital asset ecosystem.

Powell made it clear that the Federal Reserve supervises several banks already venturing into the world of cryptocurrencies. However, he acknowledged that the regulatory environment remains a substantial obstacle to broader engagement in this sector. He reminded stakeholders of the critical importance of robust risk management practices, particularly when dealing with assets that involve higher volatility.

The crypto industry has welcomed Powell's statements as a milestone towards mainstream acceptance of digital assets. The potential for banks to catalyze cryptocurrency adoption signals a pivotal shift for the industry. Bitcoin's recent price performance also reflects this optimism, with the cryptocurrency trading at approximately $105,066, representing an increase of over 2% in just 24 hours.

Crypto analyst Marty Party also noted the implications of Powell's guidance, suggesting it could prompt regulatory bodies like the FDIC to consider insuring crypto held by banks, thus further solidifying the credibility of cryptocurrency within the financial system.

However, skepticism persists in certain financial circles. Eleanor Terrett, a reporter at Fox Business, shared insights from an anonymous source at a major bank who questioned Powell's optimism, illustrating the gap between regulatory messaging and practical banking operations. The source indicated that while there is a desire to engage with crypto clients, stringent