Federal Reserve Chair Jerome Powell has emphasized the importance of implementing stronger regulations on cryptocurrencies. This highlights the ongoing efforts by the US central bank and Congress to establish a clearer regulatory framework for the crypto sector.

During a Federal Open Market Committee meeting, Powell stressed the necessity of balancing innovation in the cryptocurrency market with essential consumer protections, akin to those found in traditional finance. He also addressed the issue of debanking, advocating that banks should not be compelled to sever ties with legitimate crypto firms due to excessive risk aversion.

Powell reassured that financial institutions are permitted to engage with crypto customers, provided they can effectively manage the associated risks. In market developments, Bitcoin experienced modest gains, reaching $105,000 during Asian trading hours, indicating sustained interest in the cryptocurrency market amid these regulatory discussions.

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