Fed Chair Jerome Powell Hints at 'Softer' Crypto Policy as Industry Becomes More Integrated
In a move that could shake up the digital finance landscape in the United States, Federal Reserve Chairman Jerome Powell has hinted at a softer approach to cryptocurrencies, signaling a marked shift in the stance of America's most powerful financial regulator.
Speaking at the Economic Club of Chicago on Wednesday, Powell said the cryptocurrency ecosystem has matured significantly, forcing policymakers to reassess their supervisory strategy. “We’ve taken a pretty cautious stance. Other banking agencies have been more cautious about what rules they apply to banks,” he said. “I think that will loosen up a bit.”
The Transformation of Cryptocurrency
Powell acknowledged that in the early stages of its development, cryptocurrencies were a place of risk, disruption, and fraud. However, he also emphasized that the current environment has begun to show maturity and greater integration with the traditional financial system.
“We are seeing a changing climate. It is no longer about simply managing risk, but about integrating this industry into the overall economic system,” Powell said.
He also pointed to growing interest in Congress to create a regulatory framework for stablecoins. Both the Senate and the House of Representatives are considering legislation around this type of stable digital asset. “It’s a good idea, we really need it,” Powell added.
Towards Transparency and Consumer Protection
The Fed Chairman also noted that any future regulatory framework for stablecoins should include transparency standards and risk disclosures to ensure that users are adequately protected. He stressed that innovation is necessary, but must not come at the expense of the stability of the financial system.
Other Agencies Are Also Loosening Their Grip
The shift in attitude is not just coming from the Federal Reserve. According to the latest sources, the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) have also begun to ease restrictions on banks participating in the digital asset market, paving the way for an era of greater legalization and integration.
Conclusion
The latest statements from the Fed Chairman indicate an important adjustment in US monetary and financial policy, which could create more favorable conditions for the development of the cryptocurrency industry. Despite the many hurdles ahead, it’s clear that cryptocurrency is no longer the “outlaw” it once was — instead, it’s moving into the center of mainstream economic discussions in Washington.