Federal Reserve Chair Jerome Powell has indicated that US banking regulators may take a more flexible approach to crypto-related activities moving forward, emphasizing the importance of encouraging innovation without compromising financial safety. 

Speaking at the Economic Club of Chicago, Powell acknowledged past caution but said the landscape is evolving as digital assets become more integrated into the financial system. 

In parallel with this shift in tone, the US Securities and Exchange Commission (SEC) has paused its appeal in the high-profile Ripple case to allow for settlement discussions, while also convening a custody-focused roundtable with participants from Kraken, Anchorage Digital, Fidelity, and other major industry players. These coordinated developments suggest a broader regulatory recalibration is underway.

Jerome Powell Signals Softer Stance on Crypto Rules as Washington Moves Toward Regulatory Clarity

In a notable shift from past caution, Federal Reserve Chairman Jerome Powell suggested on Wednesday that a ”loosening” of crypto-related rules for banks may be on the horizon. 

The remarks, delivered during an appearance at The Economic Club of Chicago, come as federal agencies and lawmakers intensify efforts to modernize financial regulation in line with the growing integration of digital assets into the mainstream economy.

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Powell acknowledged that regulators had taken a conservative approach in response to past waves of ”failures and fraud” within the crypto sector, but said that the overall environment has since evolved. ”We took a pretty conservative [stance], 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.”

The Fed Chair emphasized that any regulatory changes will be made with care. “We’ll try to do it in a way that preserves safety and soundness, but that permits and fosters appropriate innovation… without putting consumers at risk in ways they don’t understand or make banks less safe and sound,” he added.

Powell’s comments reflect broader changes underway in the US financial regulatory landscape following President Donald Trump’s return to office in January. In recent months, federal banking agencies have taken several steps toward easing restrictions around digital assets.

The Federal Deposit Insurance Corporation (FDIC) announced last month that it would rescind previous guidance and replace it with new rules that clarify how banks can engage in permissible crypto-related activities—without needing pre-approval from the agency. Similarly, the Office of the Comptroller of the Currency (OCC) has affirmed that federally chartered banks may participate in crypto-related operations, so long as they comply with existing laws and risk management standards.

These moves indicate a coordinated effort to shift away from the cautious regulatory posture that prevailed under former SEC Chair Gary Gensler and other Biden-era officials, who often approached crypto with skepticism and frequent enforcement actions.

Stablecoins in the Spotlight on Capitol Hill

Meanwhile, Congress is pushing ahead with efforts to develop a comprehensive legal framework for stablecoins—cryptocurrencies pegged to the value of fiat currencies like the US dollar.

In a rare show of bipartisan momentum, both the House Financial Services Committee and the Senate Banking Committee have passed stablecoin legislation out of committee in recent weeks. 

The bills aim to establish clear standards for issuer reserves, consumer protections, and transparency requirements, while also bringing oversight of stablecoin markets under the purview of federal regulators.

President Trump has reportedly expressed urgency in seeing the legislation enacted and has asked lawmakers to get a finalized bill to his desk as soon as possible.

Powell welcomed the progress. “Stablecoins are a digital product that could actually have fairly wide appeal and should contain consumer protections of the typical sorts and transparency, and that’s what the Senate and the House are working on,” he said.

Though Powell stopped short of announcing specific rule changes, his openness to regulatory flexibility signals a potential turning point. For the crypto industry, it may mark the beginning of a new chapter in its relationship with traditional finance—one defined more by integration than confrontation.

SEC’s Crypto Task Force Brings Together Industry Giants for Custody Roundtable Amid Political and Regulatory Shakeups

In a move signaling the US Securities and Exchange Commission’s ongoing effort to realign its stance on digital assets under a new administration, the agency announced that top crypto industry leaders from Kraken, Exodus, Anchorage Digital, and other major players will take part in its latest roundtable discussion—this time focused on one of the most contentious and complex issues in crypto: custody.

The April 25 event, hosted by the SEC’s crypto task force, will feature input from both regulators and industry insiders as they seek to clarify rules around how digital assets are held, secured, and managed by financial institutions. The list of participants reads like a who’s who of the American crypto ecosystem, signaling the growing urgency to build a regulatory framework that can accommodate the rising demand for crypto custody solutions.

According to the SEC’s April 16 notice, the roundtable will include participation from Commissioner Hester Peirce—known for her crypto-forward stance—as well as Commissioner Caroline Crenshaw, acting SEC Chair Mark Uyeda, and Richard Gabbert, Chief of Staff for the agency’s crypto task force.

Representing the industry will be Mark Greenberg, Vice President of Consumer Business and Product at Kraken; Rachel Anderika, Chief Risk Officer at Anchorage Digital Bank; and Veronica McGregor, Chief Legal Officer at Exodus. Additional representatives are expected from WisdomTree, Fidelity Digital Asset Services, and Fireblocks—firms that have all been integral to the custody and management of digital assets in the institutional space.

“It is important for the SEC to grapple with custody issues, which are some of the most challenging as we seek to integrate crypto assets into our regulatory structure,” said Peirce in a statement released ahead of the event.

Custody Becomes Core as ETFs and Institutional Demand Surge

Custody has become a cornerstone issue as institutional interest in crypto has soared following the approval of several spot Bitcoin and Ethereum ETFs in January 2024. With billions of dollars flowing into these products, ensuring that digital assets are securely and compliantly stored has become a pressing concern.

Traditional financial giants, including BNY Mellon and Fidelity, have either launched or expanded digital asset custody operations in recent years. The regulatory clarity—or lack thereof—around how these institutions can manage crypto holdings for clients has become one of the defining questions in US financial policy.

The SEC’s willingness to openly collaborate with market participants may mark a significant departure from the enforcement-heavy approach seen under former Chair Gary Gensler, who left the agency following President Donald Trump’s inauguration in January.

The upcoming roundtable is also taking place under an unusual cloud of leadership ambiguity. While Paul Atkins was confirmed by the US Senate as the next SEC Chair on April 9, the April 25 roundtable still lists Mark Uyeda as acting chair. 

The commission has not provided an official swearing-in date for Atkins or clarified the leadership transition process, leading to speculation about internal disagreements or delays.

Uyeda, a Republican commissioner and longtime advocate for regulatory restraint, has reportedly pushed back against attempts by the so-called Department of Government Efficiency (DOGE)—a group advised by Elon Musk and closely tied to the Trump administration—to access the SEC’s internal systems and data.

DOGE: Disruptive Reform or Overreach?

The roundtable event comes amid growing controversy over DOGE’s influence across federal agencies. Though not a formal government entity, the Department of Government Efficiency has allegedly gained access to multiple agencies’ operations under the banner of streamlining bureaucracy. According to internal sources, Uyeda has resisted DOGE’s request to audit SEC data, drawing a line at the agency's independence.

Critics argue DOGE’s involvement has blurred the lines between regulatory oversight and political theater. The group is facing lawsuits over staff dismissals at other agencies, and there is increasing concern that the SEC might be next on Musk’s deregulation hit list.

Since President Trump returned to office, the SEC has walked back a number of high-profile enforcement actions, dropped certain lawsuits against crypto firms, and initiated a broader conversation about restructuring digital asset oversight. The crypto task force, under Peirce’s leadership, has hosted several roundtable events aimed at soliciting public input.

The March 21 roundtable focused on the classification of crypto tokens as securities, while the April 11 event explored how regulation could be “tailored” to fit the realities of decentralized finance and trading platforms.

The upcoming April 25 session promises to be even more impactful, as the custody issue sits at the intersection of institutional finance, user protection, and market integrity.

Federal Reserve Chair Jerome Powell has indicated that US banking regulators may take a more flexible approach to crypto-related activities moving forward, emphasizing the importance of encouraging innovation without compromising financial safety. 

Speaking at the Economic Club of Chicago, Powell acknowledged past caution but said the landscape is evolving as digital assets become more integrated into the financial system. 

In parallel with this shift in tone, the US Securities and Exchange Commission (SEC) has paused its appeal in the high-profile Ripple case to allow for settlement discussions, while also convening a custody-focused roundtable with participants from Kraken, Anchorage Digital, Fidelity, and other major industry players. These coordinated developments suggest a broader regulatory recalibration is underway.

Jerome Powell Signals Softer Stance on Crypto Rules as Washington Moves Toward Regulatory Clarity

In a notable shift from past caution, Federal Reserve Chairman Jerome Powell suggested on Wednesday that a ”loosening” of crypto-related rules for banks may be on the horizon. 

The remarks, delivered during an appearance at The Economic Club of Chicago, come as federal agencies and lawmakers intensify efforts to modernize financial regulation in line with the growing integration of digital assets into the mainstream economy.

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Powell acknowledged that regulators had taken a conservative approach in response to past waves of ”failures and fraud” within the crypto sector, but said that the overall environment has since evolved. ”We took a pretty conservative [stance], 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.”

The Fed Chair emphasized that any regulatory changes will be made with care. “We’ll try to do it in a way that preserves safety and soundness, but that permits and fosters appropriate innovation… without putting consumers at risk in ways they don’t understand or make banks less safe and sound,” he added.

Powell’s comments reflect broader changes underway in the US financial regulatory landscape following President Donald Trump’s return to office in January. In recent months, federal banking agencies have taken several steps toward easing restrictions around digital assets.

The Federal Deposit Insurance Corporation (FDIC) announced last month that it would rescind previous guidance and replace it with new rules that clarify how banks can engage in permissible crypto-related activities—without needing pre-approval from the agency. Similarly, the Office of the Comptroller of the Currency (OCC) has affirmed that federally chartered banks may participate in crypto-related operations, so long as they comply with existing laws and risk management standards.

These moves indicate a coordinated effort to shift away from the cautious regulatory posture that prevailed under former SEC Chair Gary Gensler and other Biden-era officials, who often approached crypto with skepticism and frequent enforcement actions.

Stablecoins in the Spotlight on Capitol Hill

Meanwhile, Congress is pushing ahead with efforts to develop a comprehensive legal framework for stablecoins—cryptocurrencies pegged to the value of fiat currencies like the US dollar.

In a rare show of bipartisan momentum, both the House Financial Services Committee and the Senate Banking Committee have passed stablecoin legislation out of committee in recent weeks. 

The bills aim to establish clear standards for issuer reserves, consumer protections, and transparency requirements, while also bringing oversight of stablecoin markets under the purview of federal regulators.

President Trump has reportedly expressed urgency in seeing the legislation enacted and has asked lawmakers to get a finalized bill to his desk as soon as possible.

Powell welcomed the progress. “Stablecoins are a digital product that could actually have fairly wide appeal and should contain consumer protections of the typical sorts and transparency, and that’s what the Senate and the House are working on,” he said.

Though Powell stopped short of announcing specific rule changes, his openness to regulatory flexibility signals a potential turning point. For the crypto industry, it may mark the beginning of a new chapter in its relationship with traditional finance—one defined more by integration than confrontation.

SEC’s Crypto Task Force Brings Together Industry Giants for Custody Roundtable Amid Political and Regulatory Shakeups

In a move signaling the US Securities and Exchange Commission’s ongoing effort to realign its stance on digital assets under a new administration, the agency announced that top crypto industry leaders from Kraken, Exodus, Anchorage Digital, and other major players will take part in its latest roundtable discussion—this time focused on one of the most contentious and complex issues in crypto: custody.

The April 25 event, hosted by the SEC’s crypto task force, will feature input from both regulators and industry insiders as they seek to clarify rules around how digital assets are held, secured, and managed by financial institutions. The list of participants reads like a who’s who of the American crypto ecosystem, signaling the growing urgency to build a regulatory framework that can accommodate the rising demand for crypto custody solutions.

According to the SEC’s April 16 notice, the roundtable will include participation from Commissioner Hester Peirce—known for her crypto-forward stance—as well as Commissioner Caroline Crenshaw, acting SEC Chair Mark Uyeda, and Richard Gabbert, Chief of Staff for the agency’s crypto task force.

Representing the industry will be Mark Greenberg, Vice President of Consumer Business and Product at Kraken; Rachel Anderika, Chief Risk Officer at Anchorage Digital Bank; and Veronica McGregor, Chief Legal Officer at Exodus. Additional representatives are expected from WisdomTree, Fidelity Digital Asset Services, and Fireblocks—firms that have all been integral to the custody and management of digital assets in the institutional space.

“It is important for the SEC to grapple with custody issues, which are some of the most challenging as we seek to integrate crypto assets into our regulatory structure,” said Peirce in a statement released ahead of the event.

Custody Becomes Core as ETFs and Institutional Demand Surge

Custody has become a cornerstone issue as institutional interest in crypto has soared following the approval of several spot Bitcoin and Ethereum ETFs in January 2024. With billions of dollars flowing into these products, ensuring that digital assets are securely and compliantly stored has become a pressing concern.

Traditional financial giants, including BNY Mellon and Fidelity, have either launched or expanded digital asset custody operations in recent years. The regulatory clarity—or lack thereof—around how these institutions can manage crypto holdings for clients has become one of the defining questions in US financial policy.

The SEC’s willingness to openly collaborate with market participants may mark a significant departure from the enforcement-heavy approach seen under former Chair Gary Gensler, who left the agency following President Donald Trump’s inauguration in January.

The upcoming roundtable is also taking place under an unusual cloud of leadership ambiguity. While Paul Atkins was confirmed by the US Senate as the next SEC Chair on April 9, the April 25 roundtable still lists Mark Uyeda as acting chair. 

The commission has not provided an official swearing-in date for Atkins or clarified the leadership transition process, leading to speculation about internal disagreements or delays.

Uyeda, a Republican commissioner and longtime advocate for regulatory restraint, has reportedly pushed back against attempts by the so-called Department of Government Efficiency (DOGE)—a group advised by Elon Musk and closely tied to the Trump administration—to access the SEC’s internal systems and data.

DOGE: Disruptive Reform or Overreach?

The roundtable event comes amid growing controversy over DOGE’s influence across federal agencies. Though not a formal government entity, the Department of Government Efficiency has allegedly gained access to multiple agencies’ operations under the banner of streamlining bureaucracy. According to internal sources, Uyeda has resisted DOGE’s request to audit SEC data, drawing a line at the agency's independence.

Critics argue DOGE’s involvement has blurred the lines between regulatory oversight and political theater. The group is facing lawsuits over staff dismissals at other agencies, and there is increasing concern that the SEC might be next on Musk’s deregulation hit list.

Since President Trump returned to office, the SEC has walked back a number of high-profile enforcement actions, dropped certain lawsuits against crypto firms, and initiated a broader conversation about restructuring digital asset oversight. The crypto task force, under Peirce’s leadership, has hosted several roundtable events aimed at soliciting public input.

The March 21 roundtable focused on the classification of crypto tokens as securities, while the April 11 event explored how regulation could be “tailored” to fit the realities of decentralized finance and trading platforms.

The upcoming April 25 session promises to be even more impactful, as the custody issue sits at the intersection of institutional finance, user protection, and market integrity.