Regulators may “ease” requirements related to digital assets for financial institutions in the future, according to Jerome Powell, Chairman of the Federal Reserve.
The official mentioned a “wave of failures and fraud” in the sector in recent years but noted the industry’s shift towards the “mainstream.”
“We have taken a fairly conservative view. Other regulators have taken an even stricter stance regarding the guidelines and rules they have implemented for banks. I think there will be some easing,” Powell explained.
According to the Fed Chair, the central bank intends to encourage innovation without exposing consumers to risks or undermining the reliability and resilience of institutions.
Powell described recent legislative initiatives regarding stablecoins as “positive.”
“Such a product can gain widespread popularity and should include typical consumer protection measures and transparency,” he emphasized.
On April 16, in an interview with Financial Times, Binance CEO Richard Teng acknowledged the U.S. administration’s friendly approach to digital assets, including plans to establish a regulatory framework and a national crypto reserve.
The top executive reported the platform’s cooperation with authorities in several countries on establishing a SBR.
Legislative Work
Formed by Trump in January, the working group on digital asset markets identified the development of a regulatory framework for stablecoins as a priority.
In April, the U.S. House Financial Services Committee passed the STABLE Act framework bill on oversight of “stablecoin” issuers, which will now proceed to a vote in Congress.
On March 13, the U.S. Senate Banking Committee approved an alternative document, the GENIUS Act.