A significant turning point has just emerged on the legal map of crypto in the US. Federal Reserve Chairman Jerome Powell has publicly emphasized the urgency of developing a legal framework for stablecoins, while signaling that the US financial system may soon 'open its doors' to the cryptocurrency sector – particularly stablecoins – in the near future.
From 'prohibition' to 'flexibility': Is the Fed changing direction?
In his latest speech at an economic event, Mr. Powell stated that it is time for substantial legal action regarding stablecoins. He acknowledged that while consumer protection and financial stability remain priorities, a more flexible regulatory model that promotes innovation while staying within risk limits is now a preferred direction.
This is a rare occasion where the Chairman #Fed has publicly expressed an 'open' stance towards the crypto industry – something that was hard to imagine a few years ago. This signal is particularly meaningful in the context of the Trump administration accelerating the legislative process for the stablecoin sector.
Stablecoins: A strategic priority for the Fed and the White House
Mr. #Powell asserts that stablecoins are a digital product of particular public interest, and without a clear legal framework, the US will fall behind in the race to shape the new global financial system. He refers to the establishment of a legal framework for stablecoins as 'a good and extremely urgent idea.'
The political landscape has also changed. According to information from Congress, stablecoin legislation has been approved by both the Senate and the House at the committee level, and it may be presented to President Trump within the next two months.
Notably, the White House has established the President's Advisory Council on Digital Assets, a move that clearly demonstrates commitment to this sector. The appointed head of the council is Bo Hines, who stated in New York that a comprehensive stablecoin bill is being expedited to create a stable legal framework for financial institutions and businesses.
Stablecoins – the 'backbone' of the digital economy
Currently, the total market capitalization of #stablecoin is approximately $227 billion, with USDT and USDC accounting for over 88% of the market share. The role of stablecoins is not only confined to the crypto investment sector but also extends to cross-border remittance solutions, supporting instant liquidity, and serving as a bridge between the traditional financial system and the world of digital assets.
However, throughout this time, traditional financial institutions in the US have remained hesitant to approach stablecoins, largely due to unclear legal barriers and a cautious regulatory mindset.
Fed and federal agencies: Together easing restrictions
Notably, the Fed is not alone. In recent weeks, several federal agencies have also taken positive steps to loosen legal restrictions for financial institutions to engage with crypto:
The FDIC (Federal Deposit Insurance Corporation) announced it will withdraw old guidance, allowing supervised banks to independently engage in crypto-related activities without prior approval.
The OCC (Office of the Comptroller of the Currency) confirmed that crypto activities are legal within the federal banking system, making it easier for traditional financial institutions to integrate digital assets.
Overall, these movements indicate that the US is preparing for a significant shift to ensure it doesn't get left behind in the race for digital currency development – especially stablecoins – which are increasingly playing a central role in the global financial infrastructure.
Impact on the crypto market and Binance users
With the 'green light' signal from the Fed and the Trump administration, the crypto market – especially stablecoins – could enter a new growth phase. Users on Binance or other major platforms will benefit from clearer regulatory frameworks, greater protections, and improved interoperability between crypto and the banking system.
The future of stablecoins such as $USDC (issued by Circle) is also receiving special attention, especially as Circle is expected to IPO this year. If the new legal framework is issued soon, many major financial institutions will have more reasons to officially participate in the stablecoin market.
Conclusion
Fed Chairman Powell's remarks are not merely a technical statement, but a declaration that the US is ready for a long-term game with stablecoins. In the context of the global digital asset market entering a phase of fierce legal competition, Washington's proactive approach to establishing clear rules could be a powerful catalyst for advancing US crypto to new heights.
Risk warning: The cryptocurrency market always carries significant volatility and risks. This article does not constitute an investment solicitation. Users should conduct thorough research and consider carefully before participating in any financial activities related to crypto.