What Jerome Powell actually said
1. Crypto is becoming more mainstream
At recent congressional hearings, Powell remarked that “the industry is maturing,” and banks could engage with crypto clients if done in a “safe and sound manner.” Regulators have even withdrawn prior advisories that labeled token issuance inconsistent with banking practices .
2. Regulation should support innovation
According to Binance’s article (likely based on Jackson Hole commentary), Powell said “Digital assets… are here to stay. Regulation should support innovation, not kill it.” This aligns with a softer tone—yet he did not announce new policy initiatives or official Fed endorsements .
*Psychological shift: For many, hearing the Fed chair speak positively—even subtly—represents a major legitimacy signal after years of regulatory friction. - *Market context: Around the same time, Bitcoin and altcoins rose on renewed expectations of Fed rate cuts and ETF inflows, fueling bullish sentiment Ongoing regulatory moves (like the GENIUS Act, Clarity Act, crypto-friendly bank policies) add to optimism, and Powell’s remarks reinforce that trend tually “give crypto a boost”?
Not in the literal sense. There was no sweeping policy announcement or new Fed program supporting crypto. Instead, the so-called “boost” reflects:
AA tone shift toward acceptance, - *Withdrawn restrictions on banking crypto clients, - GGreater confidence in crypto's evolving institutional integration. SSo yes, it's notable—but largely more symbolic than concrete.
What it means for crypto markets now:
Driver Implication
*Interest rate outlook FFed policymakers remain data-dependent, with cuts tentatively expected later in 2025. More dovish signals could further support crypto valuations nter crypto services under more favourable guidance, increased liquidity and infrastructure growth may follow clarity**
Powell’s comments do not change the regulatory or monetary landscape overnight.