17-4-2025 – Jerome Powell, Chair of the Federal Reserve, signalled a potential softening of the rigorous regulatory framework surrounding cryptocurrencies. With a nod to the turbulent history of digital assets—marred by a spate of collapses and deceit—Powell observed that the sector is gradually shedding its fringe status. He hinted at forthcoming adjustments to existing rules, designed to nurture innovation while safeguarding the integrity of financial institutions and their clients.
On the legislative front, bipartisan momentum is gathering pace in Washington to regulate stablecoins, a form of digital currency pegged to traditional assets. Both chambers of Congress have propelled stablecoin legislation through committee stages, with President Trump pressing for swift passage into law. Powell praised these efforts, underscoring the potential for stablecoins to gain broad traction, provided robust consumer safeguards and transparency are embedded. Such developments could pave the way for banks to expand their role in offering services like custody, trading, and staking of digital currencies.
Since President Trump’s inauguration in January, federal banking regulators have been recalibrating their stance on cryptocurrencies. The Federal Deposit Insurance Corporation, for instance, revealed plans in March to overhaul obsolete directives, affirming that insured banks may pursue permissible crypto-related ventures without prior approval. Similarly, the Office of the Comptroller of the Currency has clarified that such activities fall within the scope of existing banking charters. Powell was careful to stress that any easing of restrictions would be meticulously crafted to shield consumers from opaque risks and to bolster the stability of the banking system.
