Fed Chair Powell Endorses US Crypto Legislation, Calls for Stablecoin Framework

Federal Reserve Chair Jerome Powell has publicly endorsed ongoing cryptocurrency legislation efforts in Congress, emphasizing the need for a regulatory framework for stablecoins. "It's a great thing that bills are moving," Powell stated during his testimony, signaling a shift toward clearer crypto regulations.

The Fed simultaneously removed 'reputational risk' as a consideration for banks engaging with digital assets—a move that could encourage greater institutional participation in crypto markets. Powell reinforced this stance by asserting that banks retain autonomy over client selection and crypto activities, provided they comply with existing laws.

Legislative momentum includes the bipartisan GENIUS Act for stablecoin oversight and the CLARITY Act for market structure. These developments coincide with growing institutional recognition of cryptocurrencies as a legitimate asset class.