Catenaa, Monday, April 21, 2025- Federal Reserve Chair Jerome Powell said Wednesday the central bank may ease restrictions on Crypto-related activities by US banks, signaling a potential regulatory shift as digital assets move closer to the financial mainstream.
Speaking at The Economic Club of Chicago, Powell acknowledged years of “failures and fraud” in the crypto sector but said the environment is maturing.
The comments reflect a broader pivot since President Donald Trump returned to office in January. Banking regulators including the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency have recently rolled back prior restrictions, clarifying that crypto activity is permissible within the federal banking system.
Powell also voiced support for efforts in Congress to regulate stablecoins. Bipartisan bills have cleared House and Senate committees, and Trump has indicated he wants legislation on his desk soon.
“Stablecoins are a digital product that could actually have fairly wide appeal,” Powell said, stressing the need for transparency and consumer protections.
The evolving policy landscape marks a sharp contrast from prior years, as Washington reconsiders its crypto stance amid economic and political shifts.
