๐๐ง๐ญ๐๐ซ๐๐ฌ๐ญ ๐๐๐ญ๐๐ฌ & ๐๐ซ๐ฒ๐ฉ๐ญ๐จ ๐๐๐ง๐ค๐ข๐ง๐ ๐ฅ๐ฅ
Federal Reserve Chairman Jerome Powell has reaffirmed his stance on stablecoin regulation, interest rates, and access to banking for crypto businesses. While facing pressure from former President Trump over inflation concerns, Powell told the Senate Banking Committee that there is no immediate need to lower interest rates. He also expressed support for stablecoin regulation while firmly opposing efforts to restrict crypto-related banking services, signaling a more balanced approach toward digital assets.
Despite calls for aggressive rate cuts to stimulate capital inflows, Powell has chosen a measured approach. His reluctance to implement drastic reductions stems from concerns about potential market instability, which could push investors toward lower-risk assets. This cautious policy stance has already impacted the market, as Bitcoin ETFs recorded their first weekly net outflow of 2025. While some investors await clearer monetary signals, Powellโs decision suggests that institutional players may hold back on major crypto investments until regulatory and economic conditions stabilize.
Beyond interest rate policies, Powell emphasized the importance of establishing clear legal frameworks for stablecoins. He acknowledged their potential benefits for both consumers and businesses but stressed the need for regulatory safeguards to ensure financial stability. The European Unionโs advancements in stablecoin regulations have increased pressure on U.S. lawmakers to take decisive action. Additionally, Powell addressed rising concerns over โdebankingโ in the crypto industry, pledging to investigate the issue further. With Congress currently examining Operation Choke Point 2.0, the FDICโs extensive records on the matter could play a critical role in shaping future policies.
#CryptoRegulation #StablecoinPolicy #BitcoinETF #CryptoBanking #FinancialMarkets $BTC $ETH $XRP
