Federal Reserve Chair Jerome Powell expressed support for legislative norms for cryptocurrencies during his Congressional testimony.
Support for Crypto Regulation
Jerome Powell stated the need for a regulatory framework for digital assets, including stablecoins, during his testimony on June 24, 2025, in Washington. He emphasized the importance of transparency and consumer protection in the context of ongoing legislative efforts.
Importance of Stablecoins
Powell highlighted that stablecoins are digital products with the potential for broad appeal and require consumer protection. This makes them a key aspect of the work being done by both the Senate and the House.
Market Impact and Institutional Interest
The support from the Federal Reserve signals growing institutional interest, which might affect assets like BTC and ETH. Regulation is expected to open new funding channels for cryptocurrencies, impacting DeFi protocols and liquidity pools. Powell noted that historically, regulatory announcements lead to asset volatility, often followed by price appreciation.
Jerome Powell’s support highlights the importance of regulating stablecoins and other digital assets, opening new opportunities for institutional investment and future market developments.
