Crypto Goes Legit? Powell Signals Policy Pivot Amid Debt Warnings

- Powell emphasizes the need for cryptocurrency regulation at the Chicago Economic Club - Senate approves GENIUS Act, House reviewing STABLE Act [Unblock Media] Federal Reserve Chairman Jerome Powell acknowledged the mainstream adoption of cryptocurrency and hinted at the possibility of adjusting financial regulations to align with digital assets. Speaking at the Chicago Economic Club, Powell highlighted the need for a comprehensive regulatory framework for stablecoins. This reflects the increasing importance of stablecoins in the financial ecosystem. Powell stated that banks could "fully cater to cryptocurrency customers if they effectively manage related risks," indicating a shift from the previous stance that limited financial institutions' participation in the cryptocurrency sector. In addition to the issue of cryptocurrency regulation, Powell expressed concerns about the U.S. federal debt problem and explained that the current deficit is not sustainable even under full employment conditions. He criticized policies focused on reducing discretionary spending for not addressing the core issues. Meanwhile, the U.S. Congress is in the midst of discussions on stablecoin legislation. The Senate Banking Committee recently approved the GENIUS (Guiding and Establishing National Innovation for U.S. Stablecoins) Act, which aims to establish a regulatory framework for payment-based stablecoins. At the same time, the House is reviewing the STABLE (Stablecoin Transparency and Accountability for a Better Ledger Economy) Act, which focuses on transparency and consumer protection. These legislative efforts reflect a bipartisan recognition of the need for stablecoin regulation and demonstrate a commitment to balancing innovation and financial stability. As cryptocurrency becomes increasingly integrated into mainstream finance, regulatory clarity is expected to play a crucial role in shaping the future of digital assets in the United States.