On April 17, 2025, Federal Reserve Chairman Powell's speech at the Chicago Economic Club sparked heated discussions in the crypto market. Although he did not release any direct benefits such as interest rate cuts, his statements regarding cryptocurrency regulation sent positive signals—he clearly stated that there is room for adjustment in the regulatory policies for banks regarding cryptocurrencies, affirmed the trend of cryptocurrency mainstreaming, and emphasized the need to establish a clear regulatory framework for stablecoins. This statement conveys a policy intention to support industry innovation and development while maintaining financial security.
Banking regulation has shifted towards leniency.
Powell pointed out that there is room for optimization in the current cryptocurrency regulatory policies for banking institutions. While acknowledging the trend of cryptocurrency market mainstreaming, he particularly emphasized the necessity of a regulatory framework for stablecoins. This statement echoes the policy shift of U.S. regulatory agencies in recent years—since the first White House cryptocurrency summit on March 7, 2025, the series of documents released by the OCC marks a substantial change in regulatory attitude.
For a long time, the U.S. banking system has held a dismissive attitude towards cryptocurrencies, even gaining the nickname 'Chokehold Action 2.0' due to its complete refusal to serve blockchain companies. Now, the latest guidance from the OCC allows national banks to conduct digital asset business more freely under a strict risk management framework, including offering cryptocurrency custody, stablecoin reserves, and participation in blockchain nodes, without special approval. This change is seen as incorporating crypto services into traditional banking operations, providing banks with more flexible operational space to engage deeply in the digital asset field.
The OCC promotes financial innovation.
As an independent agency under the U.S. Treasury, the OCC is responsible for regulating national banks. Under the leadership of Acting Comptroller Hood, the agency has begun to adopt a more supportive attitude towards innovation since early 2025, aligning with the overall strategy of incorporating digital assets into the mainstream economy. The new policy abolishes the 2021 Interpretation Letter No. 1179, which imposed strict limitations on banks' participation in cryptocurrency activities.
Under the revised policy, banks can now provide cryptocurrency custody services for customers, hold reserves of stablecoins pegged 1:1 to the dollar, and participate as nodes in blockchain networks. These changes not only eliminate previous regulatory barriers that hindered financial institutions from entering this field but also lay the foundation for banks to utilize blockchain technology to meet the demands of modern economic development.
Stablecoin legislation is accelerating.
The construction of a regulatory framework for stablecoins is currently a core issue in U.S. cryptocurrency policy. Powell emphasized in his speech that establishing a legal framework for stablecoins is an important measure to protect consumers and maintain financial stability. The Trump administration also clearly expressed support for stablecoin legislation and is promoting the accelerated implementation of related bills.
On April 3, the U.S. House Financial Services Committee passed the Stablecoin Transparency and Accountability Act (STABLE Act) with 32 votes in favor and 17 against, which will enter the stage of review by the full House. The bill explicitly prohibits stablecoins from providing interest returns to users and emphasizes their positioning as 'payment tools.'
In the Senate, the Committee on Banking, Housing, and Urban Affairs passed the American Stablecoin National Innovation Leadership and Establishment Act (GENIUS Act) by an overwhelming vote of 18 to 6 on March 13. The bill requires stablecoin issuers to maintain a 1:1 reserve and comply with anti-money laundering regulations, aiming to establish a regulatory system that protects consumers while enhancing the global position of the dollar.
Discrepancies between the two houses remain unresolved.
Although the stablecoin bills in both houses maintain consistency in their basic framework, there are still differences in the regulation of algorithmic stablecoins and the division of regulatory powers between state and federal levels. Industry predictions suggest that if the bills from both houses are coordinated and merged, they may complete legislation before the August recess of Congress. The Trump administration has clearly expressed support for advancing stablecoin legislation, and Treasury Secretary Scott Bescent also hinted at consolidating the dollar's status as a global reserve currency through the stablecoin system.
However, some Democratic lawmakers have questioned the potential conflict of interest of the bill regarding the Trump family's virtual currency project 'World Liberty Financial (WLFI).' Five Democratic senators sent a letter to the Federal Reserve and the OCC, questioning the potential risks brought by the USD1 stablecoin launched by World Liberty Financial, which is backed by the Trump family. This coincides with congressional consideration of the GENIUS Act, which may grant the OCC and the Federal Reserve regulatory powers, raising concerns about the stability of the financial system.
The impact of tariff policies is profound.
Regarding the recent tariff policies that have caused market fluctuations, Powell stated that the impact of tariffs on the economy may exceed expectations, potentially driving up inflation and suppressing economic growth. Although crypto assets are intended to be financial instruments independent of government control, their prices and market performance are still significantly affected by macroeconomic policies.
After the U.S. announced new global tariff policies on April 2, Bitcoin's decline was relatively small, only dropping by 10%, while the S&P 500 index's decline far exceeded this level. This indicates that even in a deep market pullback, holding Bitcoin as part of an investment portfolio still brings significant diversification benefits.
However, tariff policies may also reduce demand for speculative assets such as cryptocurrencies by increasing the costs of cross-border transactions, weakening global economic liquidity, and capital inflows. Additionally, tariffs on technology products will significantly increase the mining costs of PoW cryptocurrencies like Bitcoin, potentially forcing miners to move to lower-cost regions or reduce operational scale, thereby impacting network security and market confidence.
Overall, the U.S. cryptocurrency market is undergoing a dual transformation of regulatory policies and market environment. Although challenges remain, the policy shift and legislative progress provide new opportunities for industry innovation and development. In the future, as the regulatory framework gradually improves and the market environment continues to evolve, the role of cryptocurrencies in the global financial system will become clearer.