WASHINGTON—There could be a "loosening" of crypto-related rules financial institutions’ future, according to Federal Reserve Chairman Jerome Powell.
During an interview on Wednesday at The Economic Club of Chicago, Powell pointed to "a wave of failures and fraud" over the years, but said that the atmosphere itself is turning more mainstream. During the event, Powell also spoke about tariffs, immigration and inflation, among other topics.
Federal Reserve Chairman Jerome Powell suggested that banks could see a potential "loosening" of crypto-related regulations in the future, the Block reported.
Speaking recently at The Economic Club of Chicago, Powell acknowledged a history of "failures and fraud" in the crypto space but noted that the overall environment is becoming more mainstream. He also addressed a range of other issues during the event, including tariffs, immigration, and inflation.
"We took a pretty conservative, other bank regulators took an even more conservative perspective on the guidance and rules we imposed on banks," Powell said. "I think there will be some loosening of that."
"We'll try to do it in a way that preserves safety and soundness, but that permits and fosters appropriate innovation, but does so in a way that again doesn't put consumers at risk in ways they don't understand or make banks less safe and sound," he added.
“Since President Donald Trump took office in January, federal banking agencies have shifted their stance toward digital assets. Last month, the Federal Deposit Insurance Corporation said it would rescind old guidance and provide a new one to clarify that its supervised institutions can ‘engage in permissible crypto-related activities’ without getting the agency's go-ahead beforehand. Earlier, the Office of the Comptroller of the Currency clarified that crypto-related activities are allowed in the federal banking system,” the Block said.