In a striking stance that reflects a gradual shift in the American institutions' view towards digital currency markets, Federal Reserve Chairman Jerome Powell expressed his support for the advancement of bills aimed at regulating this sector, considering that the United States is in dire need of a clear framework for stablecoins.

During a hearing before Congress, Powell stated that "it is very positive for bills to move forward," emphasizing that the stablecoin market desperately needs legal regulation to govern its issuance and trading.

This statement comes following the U.S. Senate's approval last week of the "GENIUS Act," which lays the groundwork for a legal framework specific to stablecoins. This bill received bipartisan support, enhancing its chances of passing in the House of Representatives and subsequently being signed by President Donald Trump if approved.

Additionally, Bitcoin rose during trading on Wednesday to trade above the $106,000 level, amid the continued truce between Israel and Iran after President Trump announced a ceasefire between the two adversaries in the Middle East, along with the confirmation from Federal Reserve Chairman Jerome Powell.