Regulatory Barriers Removed for Ethereum Services
Jerome Powell, Chairman of the U.S. Federal Reserve, announced on June 24, 2025, that U.S. banks can now freely offer Ethereum services, marking a significant milestone in cryptocurrency adoption.
This regulatory shift signals increased institutional engagement and confidence in crypto markets, evidenced by substantial inflows into Bitcoin and Ethereum ETFs, indicating potential growth in liquidity and service offerings.
U.S. Federal Reserve Chair Jerome Powell announced that banks can offer Ethereum services, removing any previous regulatory barriers. This decision, declared during a congressional testimony, signifies a pivotal shift in the U.S. banking policy towards the cryptocurrency sector.
In his testimony, Powell clarified that no Federal Reserve legal barriers prevent banks from servicing cryptocurrency clients, including Ethereum offerings. This update aligns with the Fed’s commitment to allow banks to engage with crypto “in a safe and sound manner.”
Market Reactions and Institutional Inflows
Following the announcement, the cryptocurrency markets saw immediate positive reactions, with notable institutional inflows into Bitcoin and Ethereum ETFs. The removal of regulatory doubts is being viewed as a facilitator for increased liquidity and market activity.
Analysts predict that institutional adoption of Ethereum and related crypto services will rise, driven by greater access and decreased regulatory roadblocks. This change is expected to enhance liquidity and reinforce confidence in the markets among institutional players.
Future Implications for Banking and Crypto Products
The decision may also pave the way for new bank-driven crypto products, potentially increasing competition within the financial sector. Enhanced crypto services could attract a broader customer base to the banks offering such services.
Historical examples indicate that the removal of regulatory constraints can lead to significant growth in cryptocurrency markets. The policy's alignment with SEC initiatives suggests a broader regulatory framework is emerging, likely ushering in expanded institutional participation and new technological implementations.
Fed's Stance on Risk Management
Jerome Powell, Chairman of the U.S. Federal Reserve, emphasized that banks can engage with crypto service offerings “in a safe and sound manner,” highlighting that risk management standards remain a priority.