Federal Reserve Chair / has acknowledged the growing mainstream adoption of cryptocurrencies and indicated a shift in the regulatory approach toward digital assets.
Speaking at the Economic Club of Chicago, Powell stated that the crypto sector has matured, warranting a more nuanced regulatory framework.
He emphasized the need for clear guidelines, particularly concerning stablecoins, to foster innovation while ensuring financial system safety and soundness.
Powell addressed concerns about “debanking,” where financial institutions have severed ties with crypto firms due to compliance risks.
He expressed a commitment to reassessing these practices, acknowledging that some banks, especially those tied to crypto or other controversial sectors, faced unfair treatment under previous administrations. Powell affirmed that banks are “perfectly able to serve crypto customers, as long as they understand and can manage the risks.”
The Federal Reserve’s stance reflects a broader policy shift under the current administration, which has been more receptive to the integration of digital assets into the financial system.
This includes support for developing a regulatory framework around stablecoins, recognizing their growing role in the economy.
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