Chairman Powell of the Federal Reserve has stated that the intention is not to hinder the growth of cryptocurrency

During a hearing before the Senate Banking Committee, Federal Reserve Chairman Jerome Powell discussed the cryptocurrency industry, stating that the central bank does not want to stifle innovation but is wary of fraud and risks. Powell also acknowledged the potential for practical applications of blockchain technology. However, he warned that financial institutions need to be cautious in dealing with crypto and stated that Congress should consider a new legal framework for the industry. Meanwhile, American regulators have become increasingly aggressive toward the crypto industry, with the SEC cracking down on crypto companies. The recent troubles at Silvergate, a crypto-friendly bank, could also have implications for the traditional finance industry, as the bank has received loans from the Federal Home Loan Banks system.