Federal Reserve Chair Jerome Powell stated during the Federal Open Market Committee (FOMC) press conference on January 29, 2025, that banks are perfectly able to serve crypto customers as long as they manage the associated risks. He emphasized that for banks engaging in crypto, the threshold is a bit higher, and they need to ensure safety and soundness when dealing with cryptocurrencies. Powell also mentioned that the Federal Reserve does not want to take actions that cause banks to terminate perfectly legal customers. He reiterated that the Fed is not against innovation and that it would be helpful to have a greater regulatory framework around crypto to address potential risks. Powell also noted that investors need to understand the risks associated with cryptocurrencies.