In a major policy breakthrough, Federal Reserve Chair Jerome Powell has confirmed that U.S. banks are now explicitly free to offer services to cryptocurrency companies and to engage in crypto-related activities. Shared by Amelie on X, this announcement represents one of the most significant shifts in U.S. financial policy toward digital assets, clearing the path for deeper institutional involvement in crypto, including XRP. A Clear Green Light from Powell Powell has made it unmistakably clear: “Banks are now free to serve crypto customers, provided they understand and manage the risks.” This was a live and official directive to provide banks with the regulatory confidence they’ve long needed. BREAKING NEWS: FED CHAIR JEROME POWELL SAID BANKS ARE NOW FREE TO PROVIDE SERVICES TO THE CRYPTO INDUSTRY! HUGE FOR #XRP AND CRYPTO! pic.twitter.com/nOsYeaSZou — 𝓐𝓶𝓮𝓵𝓲𝓮 (@_Crypto_Barbie) June 24, 2025 For years, “reputational risk” was used by regulators as a vague rationale to discourage banks from servicing the crypto sector. That’s now over. The Federal Reserve has formally removed reputational risk as a factor in its supervisory framework. This means that banks can no longer be penalized or pressured for serving crypto clients simply because of the industry’s controversial past. Building on April’s Regulatory Reforms Today’s announcement builds directly on the sweeping reforms initiated in April 2025, when the Fed, FDIC, and OCC rescinded prior guidance that required banks to seek pre-approval before engaging in crypto or stablecoin activities. That move eliminated key bureaucratic obstacles. Now, with reputational risk also off the table, banks are free to develop crypto-related services without fear of regulatory retaliation. Powell emphasized that the Fed is not against innovation. Instead, the central bank wants to ensure that any crypto activity pursued by banks is done “safely and soundly.” Importantly, he reiterated that crypto companies operating within legal bounds should never be debanked simply due to optics or external pressure. We are on twitter, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) July 15, 2023 Industry Reaction: A Defining Moment Crypto industry leaders, lawmakers, and investors are celebrating the move. Senator Cynthia Lummis called it a victory for financial fairness and innovation. Analysts are already labeling the policy shift as the official end of what was widely dubbed “Operation Choke Point 2.0”, a coordinated effort that had cut off banking access to dozens of legitimate crypto firms. Many assets rose sharply following the news , but the broader implications may favor assets like XRP, which are built for institutional and cross-border use. With banks now able to custody digital assets, provide crypto payment rails, and support tokenized financial products, XRP could benefit from enhanced liquidity, regulatory legitimacy, and widespread adoption. A New Era of Crypto-Banking Integration Amelie’s X post captured the magnitude of this moment. This isn’t speculative hype, it’s the official position of the most powerful central bank in the world. With supervisory handcuffs removed and the Fed signaling openness to crypto, U.S. banks now have both the authority and the incentive to enter the digital asset arena . For XRP and the wider crypto ecosystem, the message is clear: the door to traditional finance is no longer just open, it’s been thrown wide. And with it, a new era of mainstream adoption begins. Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses. Follow us on Twitter , Facebook , Telegram , and Google News The post Big News for XRP and Crypto: Fed Chair Greenlights Crypto for Banks appeared first on Times Tabloid .
