Fed may rase crypto restrictions for banks

Federal Reserve Chair Jerome Powell has suggested that regulators may ease restrictions related to digital assets for banks in the future. While referencing the «wave of failures and fraud» in the crypto space in recent years, Powell noted that the industry is gradually entering the mainstream.

Regulatory approach could shift

Powell acknowledged that the Fed has taken a cautious stance on crypto, and other regulators have imposed even stricter requirements on banks. However, this position may change soon:

«We’ve taken a fairly conservative view. Other regulators have taken an even more conservative one in terms of the guidance and rules they’ve issued for banks. I think there will be some easing,» he said.

He emphasized that the central bank supports innovation but wants to avoid exposing consumers to unnecessary risks or undermining the stability and soundness of financial institutions. Transparency and accountability will remain key, especially when it comes to stablecoins.

Stablecoins and legislative initiatives

Powell described recent legislative efforts around stablecoins as «positive,» adding that such assets could become widely adopted as long as proper consumer protections and transparency measures are in place.

On April 16, Binance CEO Richard Teng told the Financial Times that the current U.S. administration is taking a «friendly approach» toward digital assets, including initiatives to create a regulatory framework and a national crypto reserve.

In January, former President Donald Trump formed a working group on digital asset markets, which has prioritized the development of a regulatory foundation for stablecoins.

In April, the U.S. House Financial Services Committee passed the STABLE Act, a framework bill for overseeing stablecoin issuers, which now moves to a full congressional vote. On March 13, the Senate Banking Committee approved an alternative bill, the GENIUS Act.