The Federal Reserve’s Regulatory Adjustments for Cryptocurrency Banks
Federal Reserve Chairman Jerome Powell indicated that the regulatory framework applied to banks operating with cryptocurrencies may undergo adjustments, allowing greater flexibility for these institutions. The statement was made during an event hosted by The Economic Club of Chicago, where Powell addressed various topics, including inflation, immigration, and tariff policy.
According to Powell, although the sector has faced a series of “failures and frauds” in recent years, it is increasingly becoming part of the traditional financial system. The Fed chairman noted that the approach taken so far has been quite conservative, both by the Federal Reserve and other banking regulatory entities.
“I believe there will be some easing of this,” Powell stated. He emphasized, however, that any changes must be made in a way that preserves the safety and soundness of the financial system while also encouraging responsible innovations.
Powell’s remarks come amidst a backdrop of regulatory change in the United States since the beginning of the new administration. Recently, the Federal Deposit Insurance Corporation (FDIC) announced the repeal of previous guidelines, allowing supervised banks to engage in cryptocurrency-related activities without prior authorization.
Meanwhile, the U.S. Congress has been advancing the creation of a regulatory framework for stablecoins. Bills have already been approved by committees in both the House and the Senate. Former President Donald Trump has shown support and called for expedited processing of these proposals.
Jerome Powell also commented positively on this legislative effort, highlighting that stablecoins have the potential for significant adoption and should provide adequate protections for consumers. “Stablecoins are a digital product that can really have broad appeal and should contain typical consumer protections and transparency, and that is what the Senate and House are working on,” he stated.
These signals indicate that the U.S. may be preparing to more clearly integrate cryptocurrencies into the traditional banking sector, without sacrificing the necessary protections for users and the stability of the system.