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Federal Reserve Chairman Powell Supports Cryptocurrency and Emphasizes Same Supervision for Non-Bank Activities

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According to reports, Federal Reserve Chairman Powell said that the same activities and supervision are the basic principles of my support for cryptocurrency a…

Federal Reserve Chairman Powell Supports Cryptocurrency and Emphasizes Same Supervision for Non-Bank Activities

According to reports, Federal Reserve Chairman Powell said that the same activities and supervision are the basic principles of my support for cryptocurrency and other areas of concern. Carefully monitor the exposure of small and medium-sized banks to CRE. Non-bank activities in the fields of cryptocurrency and mortgage loans should be subject to the same supervision as the regulated banks. The Federal Reserve is very firmly committed to tailoring regulatory regulations for banks.

Powell: The non-bank activities in the cryptocurrency and mortgage fields should be subject to the same supervision as the regulated banks

Analysis based on this information:


The message conveyed by Federal Reserve Chairman Powell emphasizes the need for the same level of supervision for non-bank activities in the fields of cryptocurrency and mortgage loans as traditional regulated banks. Powell states that these activities have the basic principles of his support, but the exposure of small and medium-sized banks to commercial real estate (CRE) should also be monitored carefully.

Powell’s support for cryptocurrency is significant as it seems to signal a shift towards greater acceptance and recognition for digital currencies from an institutional perspective. This could encourage more widespread adoption and investment in cryptocurrencies, potentially leading to further growth and innovation within the industry.

However, the emphasis on the same level of supervision for non-bank activities implies concerns about potential risks associated with these areas. The Federal Reserve has a responsibility to ensure that consumers and the broader financial system are protected from any negative effects of unregulated activities, such as fraudulent schemes or market instability.

The importance of monitoring the exposure of small and medium-sized banks to CRE may be related to the current economic climate, where there are concerns about a potential real estate bubble. By monitoring these exposures, the Federal Reserve can better understand any potential risks to the banking system and take appropriate action if needed to prevent systemic issues.

Furthermore, the mention of tailoring regulatory regulations for banks highlights the importance of a flexible approach to regulation, recognizing the diverse needs and risks within the banking sector. This could help to promote innovation and competition while maintaining stability and consumer protection.

In summary, Powell’s message indicates a shift towards greater acceptance and support for cryptocurrency, but also highlights the need for continued supervision and monitoring of non-bank activities. The emphasis on tailored regulation and careful monitoring of risks to small and medium-sized banks suggests a proactive approach to maintaining financial stability and consumer protection.

Overall, a careful balance between support and regulation will be important for achieving a sustainable and stable financial system in the long term.

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