The Federal Reserve signaled Wednesday that servicing the cryptosphere shouldn’t be off-limits for U.S. banks, whether that involves catering to customers or pioneering new services.

Fed Chair Jerome Powell said during a Wednesday press conference that the U.S. central bank is “not against innovation,” and that “banks are perfectly able to serve crypto customers, as long as they understand and can manage the risks.”

“A good number of our banks that we regulate and supervise do that,” Powell continued. “The threshold has been a little higher for banks engaging in crypto activities.”

Powell’s remarks came days after the House of Representatives officially began investigating a plot dubbed “Operation Choke Point 2.0.” His comments were made in response to a reporter asking whether speculation in an unregulated asset class could hurt American households.

The term for the purported plot, which borrows its name from an Obama-era initiative, was popularized by Nic Carter, a partner at Castle Island Ventures. In a post

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Author: André Beganski