FED Chair Jerome Powell noted the Fed’s earlier unsuccessful efforts with Congress to establish a legal framework for stablecoins during crypto’s turbulent years in 2022–2023, but observed that the climate is now shifting as lawmakers show renewed interest in regulation

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Apr 16, 2025 - 12:00am

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During crypto’s difficult years, which culminated in 2022 and 2023 with several high-profile business failures, the Fed “worked with Congress to try to get a [...] legal framework for stablecoins, which would have been a nice place to start,” said Powell. “We were not successful.” “I think that the climate is changing and you’re moving into more mainstreaming of that whole sector, so Congress is again looking [...] at a legal framework for stablecoins,” he said. “Depending on what’s in it, that’s a good idea. We need that. There isn’t one now,” said Powell.

Powell noted that earlier efforts to collaborate with Congress on a legal structure for stablecoins were unsuccessful. Still, he observed that “the climate is changing,” with lawmakers now showing renewed interest in formalizing regulation.