Federal Reserve Chair Powell Suggests Easing Bank Cryptocurrency Rules

On April 17th, as reported by TechinAsia, this morning Federal Reserve Chairman Powell stated during an interview at the Chicago Economic Club that in the future, regulatory restrictions on banks engaging in crypto businesses may be loosened. Powell reviewed the "successive blows and frauds in the cryptocurrency field in recent years," but pointed out that the current industry environment has become more mainstream. "We have previously implemented relatively conservative regulatory guidance for banks—other banking regulatory agencies are even stricter, and I believe the relevant rules will be relaxed. The Federal Reserve will give top priority to safeguarding the safety and soundness of the financial system, promote moderate innovation while preventing consumers from bearing unknown risks and ensuring the security of banks." Since Trump took office in January of this year, federal banking regulatory agencies have continuously adjusted their stances on digital assets. Last month, the Federal Deposit Insurance Corporation (FDIC) announced the withdrawal of the old guidelines, clarifying that its regulatory agencies can "engage in compliant crypto businesses" without prior approval; the Office of the Comptroller of the Currency (OCC) also previously stated that it allows the federal banking system to participate in crypto-related activities. The U.S. Congress is making rapid progress in the construction of the stablecoin legislative framework. Bills in both the House of Representatives and the Senate have passed committee reviews, and Trump expressed his hope to sign them into law as soon as possible. Powell stated: "Stablecoins, as a digital product that may gain widespread adoption, should be equipped with routine consumer protection measures and disclosure requirements, which is the focus of the legislative work in both houses."