Powell: The non-bank activities in the cryptocurrency and mortgage fields should be subject to the same supervision as the regulated banks

According to reports, Federal Reserve Chairman Powell said that the same activities and supervision are the basic principles of my support for cryptocurrency and other areas of concern. Carefully monitor the exposure of small and medium-sized banks to CRE. Non-bank activities in the fields of cryptocurrency and mortgage loans should be subject to the same supervision as the regulated banks. The Federal Reserve is very firmly committed to tailoring regulatory regulations for banks.

Interpretation of this information:

The statement made by Federal Reserve Chairman Powell regarding cryptocurrency and other areas of concern highlights the importance of maintaining the same level of supervision and careful monitoring for all financial activities. Powell stresses the significance of keeping a close eye on the exposure of small and medium-sized banks to commercial real estate (CRE) and treating non-bank activities in cryptocurrency and mortgage loans with the same level of regulation as banks. The Federal Reserve is committed to customizing regulatory regulations for banks given the diverse nature of their operations.

It is noteworthy that Powell’s stance on cryptocurrency is not negative, but rather emphasizes the importance of effective supervision. The market for cryptocurrency has grown significantly in recent years, making it necessary to regulate these activities as banks. As a result, the same regulatory framework should be implemented for non-bank activities in mortgage loans and cryptocurrency ventures, as for banks. This indicates a move towards a more inclusive approach to regulating the financial world, where all financial activities regardless of the industry, will be subject to similar regulations.

Furthermore, another key point addressed in Powell’s statement is the need to monitor the exposure of small and medium-sized banks to commercial real estate (CRE). This is significant as small banks are far more vulnerable to this type of investment than larger banks. Thus, it is important to regulate the investments of all banks effectively to ensure stability and the growth of the financial sector.

Finally, Powell’s emphasis on tailoring regulatory regulations for banks is an essential step towards effective regulation. Given the diverse nature of operations between different banks, it is important to have regulatory regulations that are tailor-made for the specific requirements of each bank. This ensures that the regulations are not too restrictive for some banks and too lenient for others.