Fed Chair Powell Signals Regulatory Easing as Crypto Sector Matures

In a significant policy shift, Federal Reserve Chair Jerome Powell announced that the U.S. is preparing to relax certain cryptocurrency and banking regulations. Speaking at the Economic Club of Chicago, Powell acknowledged the maturation of the crypto market and emphasized the need for a clear regulatory framework, particularly concerning stablecoins. ​

Powell stated that there would be “some loosening” of crypto-related banking guidance, aiming to foster innovation while preserving the safety and soundness of the financial system. He noted that the failures and scandals that once dominated the crypto landscape justified the Fed’s initial cautious stance. However, with stablecoins gaining traction and bipartisan discussions underway in Congress, the environment is changing.​

The Fed Chair highlighted the importance of establishing a legal framework for stablecoins, emphasizing consumer protections and transparency. He pointed out that both the Senate and the House are considering such frameworks, which he deemed a positive development. Powell’s comments suggest potential easing in areas like bank custody of crypto assets and acceptance of stablecoins, areas the industry will closely watch.​

Industry leaders welcomed Powell’s remarks, viewing them as a recognition of crypto’s growing role in the broader economy. Sid Powell, CEO of Maple Finance, noted that the shift in tone reflects the sector’s maturity and its potential wide-ranging implications for the economy and U.S. users. As the crypto sector becomes more institutionalized, Powell’s comments reinforce the growing view in Washington that its integration into the financial system must be met with proportional, risk-based oversight rather than blanket restrictions.