'It's a Great Thing': Fed Chair Powell Backs US Crypto Bills
Federal Reserve Chair Jerome Powell expressed support for crypto legislation, emphasizing the need for a stablecoin framework. The Senate passed the GENIUS Act, which aims to establish a stablecoin issuance and trading framework, with bipartisan backing. The House is considering the CLARITY Act for crypto market structure. The Fed announced it would no longer factor "reputational risk" into its evaluations of banks, allowing them to engage in crypto activities responsibly. Powell acknowledged increasing concerns about "debanking" under the Biden administration, stating it has become a significant issue. Traditional financial institutions are increasingly open to crypto, with JP Morgan allowing clients to purchase Bitcoin. Powell previously advocated for stablecoin regulations akin to bank deposits. He noted a shift in Wall Street's attitude towards crypto, anticipating more activity in the sector over time.
