‍Wall Street Just Got Permission to Go Full Crypto

In a landmark announcement, Federal Reserve Chair Jerome Powell gave U.S. banks the green light to directly engage in crypto activities. This isn’t just a nod to custody or ETF services. Powell’s statement now clears the path for banks to offer crypto trading, staking, ETFs, and direct custody of digital assets.

This is the regulatory unlock the market’s been waiting for.

What Powell Actually Said, and Why It’s a Game-Changer

The statement was clear: U.S. banks are free to engage with crypto, provided they act responsibly and protect customer funds. That’s not soft permission. That’s an open door for traditional finance (TradFi) to go all-in on crypto infrastructure.

This move builds on Powell’s February comments, where he made it clear the Fed would not stand in the way of banks serving crypto clients. Now, it’s not just permission to serve others—it’s permission to participate.

JPMorgan and Bank of America Already Moving

Major players like JPMorgan and Bank of America have already begun building crypto exposure strategies for clients. Powell’s statement removes lingering doubts and opens the floodgates for others to follow.

Expect to see:

• Spot ETF products at retail banks
• Institutional staking solutions
• Native crypto wallets tied to fiat accounts
• Integrated DeFi yield services for accredited investors

Regulatory Shift Signals Political Backing

This is not just Powell freelancing. It reflects broader U.S. policy. With the Trump administration backing digital asset stockpiling and Congress softening its stance, the Fed is now forced to adapt.

Even Powell acknowledged that the "real need is regulation, not prohibition." Translation: the crypto rails are staying. The only question now is who builds them.

Why the Market Reacted Instantly

Crypto market cap jumped 5% in 24 hours after Powell’s comments. Trading volume surged nearly 26%. Bitcoin and Ethereum spiked, followed by waves of activity across altcoins and memecoins.

That’s not speculation. It’s capital responding to a structural policy shift.

The Next Catalyst? Rate Cuts and Stablecoin Clarity

With one or two rate cuts still on the table for 2025 and federal bills on stablecoin regulation circulating, this Powell pivot is just the beginning. If monetary policy loosens while regulatory clarity sharpens, digital assets could explode.

The Fed just changed the rules. Powell didn’t whisper it, he confirmed it on the record: U.S. banks can now go all-in on crypto. Trading, custody, ETFs, even staking infrastructure are no longer off-limits.

TradFi is here. Crypto isn’t the outsider anymore. It’s now part of the U.S. financial system.