Fed Chair Powell: Crypto Going Mainstream as U.S. Works on Stablecoin Regulation

Federal Reserve Chair Jerome Powell has stated that cryptocurrency is becoming increasingly mainstream, driven by evolving U.S. regulations. In recent remarks, Powell highlighted that both chambers of Congress are actively working to establish a legal framework for stablecoins—digital assets pegged to fiat currencies like the U.S. dollar.

“Depending on what’s in it, that’s a good idea. We need that. There isn’t one now,” Powell said, underscoring the need for clear regulatory guidelines. He added that stablecoins could gain "fairly wide appeal," signaling potential for broader adoption within the financial system.

Powell's latest comments come amid broader economic concerns. He warned that the U.S. is likely to see higher inflation and slower growth due to recently announced tariffs, which have exceeded market expectations. The Fed Chair noted that economic activity has already cooled compared to last year.

Previously, Powell described Bitcoin as a potential digital alternative to gold, indicating a nuanced view on the growing crypto asset class. His remarks reflect a shift in how the Federal Reserve perceives cryptocurrencies—not just as speculative assets, but as emerging components of the modern financial ecosystem.

Jerome Powell has served as Fed Chair since 2018, guiding monetary policy through volatile periods including the COVID-19 crisis and current inflationary pressures. However, his leadership could be nearing its end. According to the New York Post, several candidates are expected to be interviewed this fall to potentially replace him.

As crypto adoption continues to rise, the Fed’s position on digital assets is likely to shape both investor sentiment and legislative action in the months ahead. Powell’s comments further validate the sector’s legitimacy in the eyes of global policymakers.