tl;dr
During a Senate Banking Committee hearing, Federal Reserve Chair Jerome Powell mentioned the Fed's commitment to addressing "debanking," particularly in relation to the cryptocurrency industry. Powell acknowledged the growing cases of debanking but did not commit to removing anyone. He also stated t...
Federal Reserve to Address "Debanking" Issue, Powell Affirms - Binance Delists Five Crypto Trading Pairs, Bitcoin's $142 Billion Fluctuation, and Cardano's Altcoin ETF Progress During a Senate Banking Committee hearing, Federal Reserve Chair Jerome Powell mentioned the Fed's commitment to addressing "debanking," particularly in relation to the cryptocurrency industry. Powell acknowledged the growing cases of debanking but did not commit to removing anyone. He also stated that there was no rush to adjust policy stance, cautioning that more rate cuts could hinder the central bank's efforts in battling inflation. This comes after Sen. Cynthia Lummis raised concerns about "Operation Chokepoint 2.0," which was alleged to stifle the cryptocurrency industry. Powell assured that the Fed is in the process of removing certain internal guidance on crypto and emphasized the robustness of the US economy. The Fed had left the interest rate unchanged following its January meeting. During a recent hearing before the Senate Banking Committee, Powell said that the Federal Reserve would work to help to end debanking.
Sen. Cynthia Lummis (R-Wyo) specifically mentioned "Operation Chokepoint 2.0," an alleged effort by federal banking regulators to stifle the cryptocurrency industry. Powell said that he was "struck" by the growing number of cases of what seems to be debanking.
Binance to Delist These Five Popular Crypto Trading Pairs: Details Bitcoin Survives $142 Billion Dump From Old Whales $1,260,727,232 in Bitcoin Mysteriously Change Hands As BTC Regains $98,000 Cardano Gains Steam in Altcoin ETF Race "I am struck, and my colleagues and I are struck, by the growing number of cases of what appears to be debanking," he said.
However, Powell stated that he could not make a commitment to remove anybody. Powell has told Lummis that the Fed is in the process of removing another line from its supervision manuals after Lummis criticized certain internal guidance on crypto at a hearing on "debanking" that took place in January. As reported by U.Today, Ripple claimed that "Operation Chokepoint 2.0" was meant to send "shockwaves" though banks.
Powell told lawmakers said that there was no rush to adjust the policy stance since the US economy has remained robust. He has cautioned that implementing more rate cuts in the near future could hinder the central bank's progress in battling inflation. As reported by U.Today, the Fed left the interest rate unchanged following its January meeting.