Federal Reserve Chairman Jerome Powell made an important statement: American banks can finally legally play with Ethereum! Will ETH soon open the doors to $100 billion in capital inflows?

Imagine: Wall Street giants are finally unleashed! They are no longer just spectators—they are set to become "big whales" in the blockchain market.

In December 2025, Federal Reserve Chairman (Fed) Jerome Powell dropped a bombshell during a Congressional hearing:
“American banks can definitely provide cryptocurrency services to clients if they ensure ‘safety and stability.’”

Does this phrase sound simple? Wrong! This is the green light the crypto world has been waiting for over the years! Especially for Ethereum (ETH), it means the world’s largest financial institutions—from JPMorgan to Citibank—now have clear “rulebook guidance” to enter blockchain services at scale.

ETH is not just a digital asset; it’s the king of smart contracts, the foundation of DeFi, NFT, and Web3. When banks get involved, they don’t bring loose change—they bring flows in the billions, even trillions of dollars.

Why is this the “ultimate unlock” for ETH?

Looking back, banks have always had mixed feelings about cryptocurrencies. The banking panic crisis of 2023 (the collapse of SVB and Signature Bank) forced the Fed to tighten regulations at one point, and many banks refused to open accounts for crypto companies, citing “reputational risks.”
This is the so-called “Operation Choke Point 2.0”—a government conspiracy theory about “choking out” the crypto industry. But now Powell himself has clarified:
We do not intend to prevent banks from providing crypto services. If banks comply with anti-money laundering (AML) regulations, risk management, and consumer protection norms, they can operate without fear.

More specifically, the US Office of the Comptroller of the Currency (OCC) in November issued Interpretive Letter No. 1186, giving banks “custody permission”: they can hold crypto assets like ETH to pay “gas fees” on the blockchain (transaction fees).

This is no small matter! Imagine, a major bank processes thousands of online transactions for clients—how much ETH is burned every day? This directly increases demand for ETH, stabilizes its price, and attracts more institutional investment.

The market has already caught the rumors. After Powell’s remarks, Bitcoin soared 2.7%, ETH rose 1.7%, and Solana even jumped 3.3%. This is no coincidence, but investor excitement over “regulatory clarity.” Traditional finance has finally acknowledged: cryptocurrency is not a fringe toy—it’s the foundation of the financial future. When banks start offering ETH custody, settlement, and derivative services, ETH’s market cap could easily rise from the current $300 billion to the trillions.

How will banks enter the market, and how will ETH “change everything”?

• Institutional capital storm: Wall Street manages 40% of the world’s assets. When they direct 1% (that’s hundreds of billions) into ETH, what will be left for retail investors? This is a true “FOMO” moment (Fear of Missing Out).

• DeFi and traditional finance merge: banks can use ETH to create stablecoins and international payment systems, replacing the old SWIFT world. Imagine your salary paid directly on the blockchain—no fees, instant credit.

• Global effect: The US leads, others follow. MiCA regulation in the EU and the Hong Kong pilot project are accelerating. ETH will become the smart version of “digital gold,” supporting the entire Web3 ecosystem.

Of course, Powell also sounded a warning: risk management is a red line. Banks can’t blindly go all-in—they need to invest in technology and compliance. But this is exactly the opportunity! For ETH developers, now is a great time to upgrade EIP-1559 (burn mechanism) to enhance the deflationary effect.

Conclusion: The ETH rocket is already ignited and preparing for launch!

Powell’s words are not just news—they’re a declaration. They mark the start of a “honeymoon” between cryptocurrency and traditional finance. Now, the world’s biggest financial player has a “clear green lane” to enter the blockchain market.
When banks start acting, ETH is not “about to be unlocked”—it’s already unlocked!

Investors, don’t hesitate any longer. ETH is not a gamble—it’s the future. Catch this wave, and Powell’s “gift” may soon be felt in your wallet.

Are you ready? The blockchain revolution starts right now!🚀

(Data sources: official Fed hearings, OCC guidance, and instant market reaction. Investing involves risks, please do your own research.)
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