What is behind Powell’s support for banks to offer Bitcoin?

In a statement that for many was surprising, the president of the Federal Reserve of the United States (Fed), Jerome Powell, said that «banks are perfectly able to offer services to cryptocurrency customers as long as they understand and can manage the risks» .

It is an announcement that marks a new stage for the country’s banks. This, after the recent repeal of the SAB 121 standard of the Bag and Securities Commission (SEC), which prevented the banking sector get involved in Bitcoin custody (BTC).

Hence, Powell’s position is considered as crucial for the cryptocurrency industry, especially after several congressmen expressed their willingness to investigate the efforts of the Joe Biden government for advancing with the call Operation Choke Point 2.0 (OCP 2.0).

It is a movement that was revealed by ecosystem leaders, pointing out that they were «unbalanced.» Apparently, the movement was led by the Federal Deposit Insurance Corporation (FDIC), an agency that discouraged banks to participate in «activities related to cryptoactive.»

Although Congress research is in its early phases, the perspective of a government conspiracy has already begun to receive generalized attention.

It is thus intuited that Powell’s statements are framed in the context of the change of government, with a congress willing to dismant cryptocurrencies.

Hence, many analysts consider that what the president of the Fed does is try to partially align with the government agenda. This, despite the fact that a final rule published by the Board of Governors of the Federal Reserve System in 2022 largely prohibited the use of digital assets in the regulated banking environment.

Everything then indicates that the banker has only given a concession, in the midst of an environment where Differences predominate that face the new president.

In any case, Bitcoin’s definitive entry to the banks had already been promoted by the new SEC directive that now follows Trump’s guidelines. This, after eliminating the regulations that prevented it.

However, while on the one hand Powell adapts to some of the government’s guidelines, accepting that banks can offer Bitcoin, on the other maintains your differences With the Republican.

Tensions between Powell and Trump grow

The opposition between the president and the banker is a situation that is monopolizing the attention of the media. Powell flatly refuses to lower interest rates, As Trump wants.

The tensions climbed on January 29, after the Federal Reserve said that There will be no changes in ratesat least for next month. These remain at 4.50% per year.

In a publication in social networks, the president accused the Federal Reserve and its president Jerome Powell to poorly manage the economy, saying that «they had not managed to stop the problem they created with inflation.»

As Cryptonotics reported, many investors and traders – as well as Donald Trump – yearned for a cut in the interest rate. But Powell did not yield to pressure On this subject.

The objective, he said, is to maintain the independence of the Federal Reserve in order to make decisions based on economic data instead of elected officials.

This was highlighted by the official at an event of the New York Times, held last December, where he stressed that isolate the Fed of political influence It was «for the benefit of all Americans.»

However, the new president has expressed interest in commenting on monetary policy. In an interview with Bloomberg, he said that the country’s president I should have interference About interest rates.

I think, in my case, I earned a lot of money, I was very successful and I think I have a better instinct that, in many cases, the people who would be in the Federal Reserve or that it would be its president.

Donald Trump.

From what you know, Powell has not had contact with the president since his swear last week. Although it was Trump himself who nominated him for the position in 2018, during his first term.

Could Trump say goodbye to Powell?

Given the differences between Powell and Trump, there are many who talk about possible dismissal. But the Federal Reserve Law It does not have a precise mandate on the removal of the president of the Central Bank.

The Fed has a board of seven governors who are nominated by the president and ratified by the Senate. Your period is 14 years.

Separately, the president payroll one of those seven governors as the president of the Board for a period of four years. This is the position currently exercised by Powell, until May 2026.

Powell said last year that I would not give up even if Trump asked for it. He added that, according to the law, the presidents cannot say goodbye or degrade the president of the Fed.

In any case, throwing the president of the Fed does not guarantee that the bank’s monetary policy decisions will change. This is because within the FED there is the Federal Open Market Committee, in charge of adjusting the rates. It is a group of 12 people that the president of the agency usually leads.

In a scenario in which a president removes Powell from the post, that committee could keep it as his leader, with which I would continue to have interference direct on the interest rate.

However, Trump is known for saying goodbye to several officials of the government government who, according to their critics, violate the law.

Republican voices such as Senator Mike Lee of Utah have recently expressed inclination for the White House to influence the Fed. A proposal seconded by Elon Musk, which is in charge of the Government Efficiency Department.

But It is not observed A strong movement in Congress To advance in that regard. And it is not good for markets, including Bitcoin.

«Markets like stability, and this unprecedented level of interference in the Federal Reserve would be anything but stable,» said Tim Stretton, of the Project on Government Oversight, a non -partisan government control body.

The expert alleges that a dismissal would generate rapid legal challenges. Therefore, when asked what advice he would give to Trump, he replied: «Let the Federal Reserve carry out its businesses according to its mandate and it will be more likely to lower interest rates.»