"Powell Calls for Crypto Regulation as Banks Eye Bitcoin"
1min read Federal Reserve Chairman Jerome Powell has recently emphasized the need for a more comprehensive regulatory framework within the cryptocurrency sector. Speaking at a press conference, Powell stated that while the central bank is not opposed to innovation or banks engaging with the cryptocurrency space, a larger regulatory framework would be beneficial for the industry's growth and stability.
Powell's remarks align with ongoing discussions in Washington about balancing innovation in digital currencies while ensuring consumer protection. The call for Congress to consider a larger regulatory framework underscores the necessity for coherent policy that can adapt to the rapid evolution of the crypto market. As the industry matures, regulatory clarity could play a crucial role in its stability and growth.
In a separate development, Federal Reserve Chair Jerome Powell has clarified that banks can serve crypto clients as long as they effectively manage the associated risks. This clarification comes amid concerns of crypto debanking and industry crises like the FTX collapse. Powell highlighted the need for a higher threshold of risk management for banks engaging in crypto activities due to their novelty, asserting that the central bank supports innovation. Meanwhile, legislative and legal actions are being taken to address the ongoing debate around banks' services to crypto firms.
US Commerce Secretary nominee Howard Lutnick was questioned during a Senate Commerce Committee hearing about his firm Cantor Fitzgerald's custodial role for Tether amidst scrutiny over the crypto token's reserves and alleged ties to illicit finance. Lutnick defended the stability of USDT and its backing, while addressing ongoing regulatory challenges and fines related to the token.
Czech National Bank Governor Aleš Michl plans to propose a strategy to allocate up to 5% of the bank's €140 billion reserves to Bitcoin. This initiative, aimed at diversifying the CNB's reserve assets, could position the CNB as the first central bank to hold Bitcoin. Michl cited the asset's potential for high returns despite its volatility and the increasing interest from major asset managers and regulatory developments in the US.
Gary Gensler has returned to the MIT Sloan School of Management as Professor of the Practice, where he will focus his teaching and research on artificial intelligence, finance, financial technology, and public policy. In addition to his academic role, Gensler will co-direct the FinTechAI@CSAIL initiative, partnering with Professor Andrew W. Lo to foster collaboration between member companies and MIT researchers on AI technologies in finance.
Tuttle Capital Management has applied for 10 
