Fed: Don’t want to prevent innovation in crypto, but the sector is messy

“We have to be open to the idea that somewhere out there — there’s a technology that can make people’s lives better,” Powell told members of the Senate Banking Committee. “We don’t want to stifle innovation.”

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If so, Powell noted that the past year has seen an “extraordinary series of events in the crypto space” and added that the field is “in turmoil”, with companies collapsing and huge frauds being discovered, such as Silvergate and FTX. “We see many things in crypto activity that require very careful conduct on the part of regulated financial institutions in the field.”