news 
Fed Chair Powell Breaks Silence on Debanking Concerns
In a recent statement, Federal Reserve Chairman Jerome Powell has broken his silence on the growing concern of “debanking”, which refers to the practice of banks and financial institutions cutting off their services to certain customers or industries. This phenomenon has been linked to the rise in cryptocurrency adoption and the increasing use of decentralized finance (DeFi) platforms.
Powell stated that he is “struck” by the growing number of cases of what appears to be debanking, which he believes could have significant consequences for the stability of the financial system. He emphasized that the Federal Reserve is actively monitoring the situation and working closely with other regulatory bodies to address any concerns.
The issue of debanking gained traction after reports emerged of banks cutting ties with crypto-related businesses, including exchanges and payment processors. Some lawmakers have expressed concerns that this trend could lead to a lack of access to financial services for certain communities or industries.
In response to these concerns, Powell assured lawmakers that the Fed is committed to ensuring equal access to financial services for all citizens, regardless of their involvement in cryptocurrency markets. He emphasized that any attempts to limit access to financial services based on an individual’s engagement with cryptocurrencies would be unacceptable and could have far-reaching consequences for the stability of the economy.
Powell also announced that the Federal Reserve is in the process of removing another line from its supervision manuals after Lummis criticized certain internal guidance on crypto at a hearing.
Source: u.today
