Fed Chairman Signals Easing of Crypto Regulation for Banks
Federal Reserve (The Fed) Chair Jerome Powell stated that there will be no interest rate cuts in the near future.
However, he provided a positive signal regarding the easing of banking regulations related to crypto assets.
The Fed Maintains a Hawkish Stance
Based on information we quoted from Beincrypto media, in his speech at the Economic Club of Chicago on April 15, 2025, Powell emphasized that The Fed will continue to be cautious in making decisions related to interest rates.
He mentioned that economic uncertainty and risks from trade policies are the main reasons not to rush into cutting interest rates.
This statement erased market expectations for a rate cut in May, with the probability now at only 16%, according to CME FedWatch.
Positive Signal for Crypto Regulation
Although there is no change in interest rate policy, Powell provided a positive signal regarding crypto regulation.
He stated that The Fed supports the easing of certain banking regulations related to digital assets.
Powell also highlighted the importance of a clear legal framework for stablecoins, given the growing popularity of cryptocurrency.
Market Response to Powell’s Statement
U.S. stock markets saw a slight decline following Powell’s speech, reflecting investor disappointment over the lack of dovish signals from The Fed.
However, the crypto market remained stable, supported by optimism surrounding regulatory easing and clearer legal frameworks for digital assets.
Conclusion
The latest statement from Federal Reserve Chair Jerome Powell indicates that there will be no interest rate cuts in the near term, but there is a positive signal regarding the easing of banking regulations for crypto assets.
This reflects The Fed’s cautious approach in facing economic uncertainty, while still supporting innovation in the digital financial sector.
