Federal Reserve Chair Jerome Powell has hinted that U.S. banks may soon see more flexibility when it comes to handling digital assets—a notable shift from the cautious approach regulators have maintained in recent years.
Speaking at an event hosted by The Economic Club of Chicago, Powell acknowledged the past turbulence in the crypto space, pointing to fraud and high-profile collapses. Despite this, he suggested that digital assets are starting to gain mainstream legitimacy. With this in mind, he noted that current regulatory restrictions—put in place to protect financial institutions and consumers—may be eased going forward.
According to Powell, the goal is to strike a careful balance: opening the door to innovation without compromising the financial system’s integrity. While regulators have historically taken a hardline stance on banks’ involvement in crypto, Powell indicated that a more nuanced approach is on the table—one that supports experimentation while keeping risks in check.
Since Donald Trump returned to office earlier this year, financial regulators have shown a clear pivot in tone. The Federal Deposit Insurance Corporation (FDIC) recently announced plans to roll back outdated crypto guidance and instead give banks more autonomy, allowing them to engage in approved crypto activities without needing prior clearance. Similarly, the Office of the Comptroller of the Currency reaffirmed that crypto-related services are permitted within the federal banking system.
Meanwhile, lawmakers in Congress are making rapid progress on new legislation for stablecoins. Both chambers have advanced bills through committee, and Trump has urged quick passage. Powell welcomed this momentum, emphasizing the importance of oversight for these increasingly popular digital assets.
He described stablecoins as a product with broad potential appeal—one that, if properly regulated, could offer consumers transparency and protection. Powell said he views the legislative developments around stablecoins as encouraging signs of a maturing crypto policy landscape.
Nigeria is taking a decisive step toward embracing stablecoin adoption, as the country’s Securities and Exchange Commission (SEC) outlined its readiness to support digital currency innovation—under clear regulatory conditions.
South Korea’s top financial watchdog has issued informal guidance urging local asset managers to scale back their investments in crypto-related stocks, according to a Korean Herald report.
In a surprising move on Tuesday, the U.S. Securities and Exchange Commission (SEC) initially approved Bitwise’s proposal to convert its cryptocurrency index fund into a full-fledged exchange-traded fund (ETF)—only to halt the decision just hours later.
Senators Tim Scott, Cynthia Lummis, Bill Hagerty, and Bernie Moreno (R-OH) have released a discussion draft of a new digital asset market structure bill—framed as the Senate counterpart to the CLARITY Act.