Federal Reserve Chair Jerome Powell expressed a willingness to reevaluate the issue of debanking in the cryptocurrency industry. This statement came in response to concerns that regulations may be excessively burdening crypto firms seeking banking services in the United States.

During a Senate Banking Committee hearing, Chair Tim Scott (R-S.C.) raised the issue with Powell, inquiring about the possibility of collaborating to ensure that financial rules do not impose unnecessary burdens.

Powell committed to working with Scott on the matter, acknowledging the need for a reassessment of the debanking situation.

Powell’s comments follow recent scrutiny in Washington, where lawmakers have held hearings and initiated investigations into debanking, which affects the ability of crypto businesses to establish and maintain bank accounts in the U.S. Last week, two hearings in the House and Senate were specifically focused on this issue.

The topic gained additional attention when Coinbase (NASDAQ:COIN), through consultant firm History Associates, filed a lawsuit against the Federal Deposit Insurance Corporation last year.

The suit accused the agency of attempting to block the crypto industry from accessing banking services. Additionally, CEOs of major banks have spoken out about their challenges in dealing with cryptocurrencies.

During the Senate hearing, Powell noted that he and his colleagues were “struck” by the increasing instances of debanking and expressed determination to revisit the issue.

Powell had previously stated at a press conference in January that banks are able to serve crypto customers, provided they can effectively manage the associated risks, though he acknowledged the higher threshold for banks engaging in crypto activities due to their novelty.