Powell suggests banks may ease crypto rules amid regulatory shift
Powell hints at easing bank crypto rules
Federal Reserve Chair Jerome Powell suggested Wednesday that banks may soon see a relaxation of stringent crypto‐related guidance.
Speaking at the Economic Club of Chicago, Powell acknowledged “a wave of failures and fraud” in digital assets but noted that “the atmosphere itself is turning more mainstream.” He added that while regulators have adopted a cautious posture, he expects “some loosening” of rules “in a way that preserves safety and soundness but permits and fosters appropriate innovation.”
Regulatory guidance shifts
Since President Trump took office in January, federal banking agencies have begun revising their approach to cryptocurrency. In March, the Federal Deposit Insurance Corporation announced it would rescind outdated guidance and issue new rules clarifying that insured banks can “engage in permissible crypto‐related activities” without prior FDIC approval. Earlier, the Office of the Comptroller of the Currency confirmed that crypto activities are allowable under existing charters. Powell emphasized that any regulatory relief would be calibrated to avoid exposing consumers to risks they “don’t understand” or undermining bank stability.
Stablecoins draw bipartisan support
On Capitol Hill, lawmakers are advancing legislation to establish a clear framework for stablecoins. Both the House and Senate have passed stablecoin bills from committee, and President Trump has urged rapid enactment. Powell lauded these efforts, describing stablecoins as “a digital product that could actually have fairly wide appeal” provided they include standard consumer protections and transparency. As the Fed works toward updated crypto policy, banks may prepare to deepen their involvement in digital assets. Observers will be watching closely for formal guidance, which could reshape how traditional financial institutions offer custody, trading, and staking services for cryptocurrencies. Read also: Ripple-SEC appeals case paused for 60 days amid settlement talks
