Fed Chair Powell Says Crypto And Banking Rules Will ‘Loosen’ As Sector Matures

Federal Reserve Chair Jerome Powell said Wednesday that the U.S. is preparing to relax certain cryptocurrency and banking regulations, marking a notable shift in tone toward the digital asset sector.
What Happened: Speaking at the Economic Club of Chicago on Wednesday, Powell acknowledged that the crypto market has become more mainstream and emphasized the need for a clear regulatory framework, particularly around stablecoins.
“There’ll be some loosening of that [crypto-related banking guidance],” Powell said, referring to previously strict rules imposed on banks engaging with crypto assets.
He added that the goal would be to foster innovation “in a way that preserves safety and soundness” in the financial system.
Powell cited the failures and scandals that once dominated the crypto landscape as a reason for the Fed’s initial cautious stance.
But with stablecoins gaining traction and bipartisan …Full story available on Benzinga.com

Read Full Article