I share in the view of the Federal Reserve as an economist, the apex bank is not actually condemning crypto, if they were, it would be catastrophic. On the contrary, they only alerted banks and financial institutions on careful dealing.
A lot of crypto enthusiasts are naive about the merits and demerits of crypto to society, which is why they will always want it to win against fiat, but things will go awkward if that is the case. This is the reason why a balance must be maintained between the two.
The economy is greater than crypto, which is why I'm so much in support of what will not affect the world's accountability.
Furthermore, the FED was careful in its remark, and below is the actual word according to decrypt
The Federal Reserve Chairman said that innovation shouldn’t be stifled but financial institutions need to take "great care" in how they interact with crypto.