Fed Chair Powell Declares Crypto Maturity Mainstream
- Fed’s Powell affirms crypto’s legitimacy, impacting financial dynamics.
- $588M Bitcoin ETF inflow post-announcement.
- Likely increase in institutional investments and crypto adoption.
On June 24, 2025, Federal Reserve Chair Jerome Powell emphasized the mainstream acceptance of cryptocurrencies in his congressional testimony in Washington.
This affirmation by Powell has fueled institutional investments in crypto ETFs, indicating a growing acceptance of digital assets.
Powell Endorses Crypto’s Legitimacy in U.S. Banking
Jerome Powell’s testimony highlights cryptocurrency recognition in U.S. banking, potentially opening doors for regulated investment. This marks a shift towards acceptance within traditional financial systems.
Powell announced U.S. banks’ permissions to service crypto firms under strict protocols. This change suggests a tighter integration of digital currencies with financial regulations. As Powell stated, “U.S. banks are allowed to offer services to cryptocurrency firms, provided they adhere to appropriate risk management protocols.”
$588 Million Bitcoin ETF Inflow Follows Fed Announcement
Institutional capital surged, with Bitcoin ETF inflows reaching $588 million, signaling confidence in the crypto market’s legitimacy. Ethereum also benefited, seeing $71 million in inflows.
Powell’s stance reduces perceived reputational risks for banks, enhancing business confidence and potentially increasing fiat integrations with crypto ecosystems.
Past Fed Statements Influence Institutional Crypto Interest
Federal Reserve statements in the past have similarly triggered positive market reactions. Powell’s recent comments echo shifts that previously increased institutional crypto holdings.
Historical trends suggest sustained institutional interest and adoption, potentially leading to legislative changes such as the GENIUS Act, further stabilizing crypto markets.
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