Fed Chair Powell Advocates for Comprehensive Stablecoin Regulation in the U.S.

Jerome Powell, the head of the U.S. Federal Reserve, has expressed support for cryptocurrency legislation currently being considered by Congress. He stated that the country needs a regulatory framework for stablecoins.

*“It’s great that the bills are making progress. We need a structure for ‘stablecoins’,” Powell remarked.*

Last week, the Senate passed the GENIUS Act, which establishes rules for the issuance and operation of stablecoins. The bill is now awaiting deliberation in the House of Representatives. Additionally, work is ongoing on the CLARITY Act, which aims to define the structure of the crypto market.

Powell’s endorsement follows the Federal Reserve’s decision to no longer consider «reputational risk» in its evaluations of banks. Previously, regulators used this criterion against financial institutions that engaged with the crypto sector.

Earlier, the Fed’s vice chair denied accusations of “debanking” the digital asset sector in the U.S., asserting that the agency maintains a balanced approach regarding cryptocurrency companies’ access to banking services.

*“We believe that banks should determine who their clients are. They are also free to engage in cryptocurrency transactions as long as it does not pose risks to their safety and soundness,” the Fed chair added.*

Powell also highlighted the issue of service refusals to companies in certain sectors, including crypto. According to him, “the Federal Reserve became aware of the seriousness of this situation during 2024.”

The Fed chair further emphasized that Wall Street’s attitude toward technology has changed, and he anticipates increased activity in the digital asset sector.

It is worth noting that in April, U.S. President Donald Trump called for Powell’s resignation due to the slow reduction of interest rates.