Crypto companies and some figures within the crypto-friendly Trump administration are expressing their concerns over US regulators excluding crypto firms from banking services, Federal Reserve Chairman Powell has emphasized his worry about this issue, stating that it will be examined. Officials in the newly established Trump administration have been increasingly vocal about the need to reintegrate the crypto industry into the banking system, from which it had been excluded due to high risk. The latest echo of this sentiment was heard during Powell’s routine testimony to the Senate Banking Committee. When members of the Senate Banking Committee raised concerns regarding the “debanking” trend affecting the crypto industry, Federal Reserve Chairman Jerome Powell mentioned that he is also concerned about this issue. Powell stated that internal auditing policies within the Federal Reserve are already under review. During his routine testimony to the Senate Banking Committee on Tuesday, Powell remarked, “I am also concerned about the number of these reports.” He added, “There is a theory that banks avoid many risks related to anti-money laundering regulations and aggressive audits, which leads them to be unwilling to accept customers who may challenge compliance requirements.” Powell also said, “We will bring a fresh perspective,” and noted that he has been affected by the increase in “debanking” incidents. Republican lawmakers and financial regulators appointed by President Donald Trump are paying close attention to the debanking incidents that are alleged to have been encouraged by banking agencies of the previous administration, particularly the Fed, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC). Powell thanked crypto-friendly Senator Cynthia Lummis. Lummis recently mentioned during a debanking session that the Fed had a policy of applying more scrutiny to banks engaging in controversial conversations or activities. Powell mentioned that this policy will be removed from the internal directives. Support for ‘stablecoins’ from Powell While crypto regulation was not the main focus of Powell’s session on Tuesday, some major concerns of the industry were addressed, including stablecoins and central bank digital currencies (CBDCs). Powell stated that the Federal Reserve supports new regulatory efforts regarding stablecoins. Speaking on the matter, Powell said, “Stablecoins could have a significant future for consumers and businesses.” He added, “We cannot say for sure right now, but we believe that it is important for there to be a regulatory framework in place to regulate the development of stablecoins safely and securely, protecting consumers and savers.” Powell also provided a clear response regarding CBDCs, which have long been a concern as a threat to the digital dollar. While there is no proposal yet in the US, when asked if he would consider launching a CBDC, Powell responded with a “yes.”