Federal Reserve Chair Jerome Powell’s statement on April 16, 2025, marks a shift in U.S. monetary policy, acknowledging cryptocurrency’s mainstream adoption and advocating for a legal framework for stablecoins, which are digital currencies pegged to assets like the U.S. dollar to maintain steady value.
Powell’s support for loosening bank regulations on crypto aligns with recent U.S. policy trends under President Trump, who has pushed to reverse Biden-era crypto crackdowns, as noted in Reuters on April 15, 2025, amid a growing stablecoin market cap from $5 billion to $159 billion over five years.
This development contrasts with the Fed’s earlier stance—Powell stated in December 2024 that the Fed cannot hold bitcoin—but reflects a pragmatic response to crypto’s role in finance, despite concerns over federal debt, which the CBO projects to rise from 99% of GDP in 2024 to 116% by 2034.
