On April 17, 2025, Federal Reserve Chair Powell delivered a highly anticipated speech at the Chicago Economic Club. Although the crypto market did not receive explicit good news such as a rate cut, Powell clearly stated that there is "room for relaxation" in cryptocurrency regulation for banking institutions. He acknowledged the mainstream trend of cryptocurrencies in recent years, specifically emphasizing the need to establish a clear regulatory framework for stablecoins, sending a positive signal supporting innovation and development in the crypto industry.

Shift in Banking Regulation Direction

Powell pointed out that there is "room for relaxation" in the current cryptocurrency regulatory policies for banking institutions. While affirming the mainstream trend of the cryptocurrency market in recent years, he particularly emphasized the need to establish a clear regulatory framework for stablecoins. This statement, while emphasizing the maintenance of financial security and stability, sends a policy signal supporting industry innovation and development. He acknowledged that regulatory agencies had been cautious due to the "successive scams and frauds" in the cryptocurrency field but noted that the current market environment has fundamentally changed.

On March 7 of this year, during the first-ever White House cryptocurrency summit, the Office of the Comptroller of the Currency (OCC) issued a series of interpretive letters, marking a substantive shift in the U.S.'s regulatory stance on digital assets.

For years, the U.S. banking system has been resistant to cryptocurrencies, often outright refusing to serve blockchain companies, earning itself the nickname of "Operation Chokepoint 2.0." The latest guidance issued by the OCC eliminates key obstacles, allowing national banks to engage more freely in digital asset activities while maintaining a strict risk management framework.

OCC Relaxes Crypto Regulation to Embrace Financial Innovation

As an independent bureau within the U.S. Department of the Treasury, the OCC is primarily responsible for regulating national banks to ensure their safe and sound operation. Historically, the OCC has maintained a cautious stance on bank involvement in cryptocurrency-related activities, requiring additional approvals and strict scrutiny. However, under Acting Comptroller Hood, who took office in early 2025, the OCC has adopted a more supportive attitude toward innovation, aligning with broader efforts to mainstream digital assets.

On March 7, 2025, the OCC officially announced that banks can now offer services such as cryptocurrency custody, stablecoin reserves, and participation in blockchain nodes without the need for special approvals. This overturns the restrictive guidance from the Biden administration era, which required banks to consult with regulators before engaging in crypto-related activities.

The OCC's new stance essentially considers cryptocurrency services as part of traditional banking activities, eliminating additional regulatory barriers that previously hindered financial institutions from entering this field. "Digital assets should and must also become part of the U.S. economy," Acting Comptroller Hsu stated. "I am committed to developing a regulatory framework for digital assets that promotes innovation while maintaining the safety, soundness, and fairness of the federal banking system."

The new interpretive letter rescinds Interpretive Letter 1179 from 2021, which previously imposed strict regulatory requirements on banks engaging in cryptocurrency activities. Under the revised policy, national banks can now provide cryptocurrency custody services to customers, ensuring the secure storage and management of private keys. Additionally, banks are allowed to hold reserves backing stablecoins pegged 1:1 to the U.S. dollar. Furthermore, banks can also participate as nodes in blockchain networks, validating transactions, thereby enhancing their support for decentralized financial activities. These changes signify a significant adjustment to the regulatory framework, providing banks with more flexible operational space to deeply integrate into the digital asset space.

U.S. Accelerates Bank and Blockchain Integration

This move by the OCC demonstrates increased confidence in banks' ability to manage crypto-related risks and aligns with the overall trend of integrating blockchain technology into the financial system. Given the industry's growing maturity and improved risk management practices, the agency believes that previous stringent scrutiny is no longer necessary.

This regulatory shift coincides with President Trump's reiteration of his commitment to repeal the "Exclusion of Cryptocurrency Companies from the Banking System" policy. He stated at a White House cryptocurrency summit, "Last year, I promised to make America the world's Bitcoin superpower and the global capital of crypto, and today we are taking historic action to fulfill that promise."

While the OCC's move is a significant boon to the digital asset industry, challenges still remain. The Federal Reserve and the FDIC have not clearly stated their positions on crypto banking activities, and federal agencies may still impose restrictions through other regulatory channels. However, the OCC's latest guidance undoubtedly marks a turning point—the U.S. financial system has finally opened its doors to digital assets. By streamlining the approval process and recognizing the legitimate financial status of digital assets, the OCC has laid the foundation for broader cryptocurrency adoption. The banking industry now has clear regulatory guidance to leverage blockchain technology to meet the new demands of economic development.

The banking sector may be concerned that stablecoins could drain bank deposits and weaken lending capacity. However, regulatory clarity will also attract new participants. Bank of America CEO Brian Moynihan has clearly stated that they will issue their own stablecoin once the legislation is in place.

Stablecoin Legislation Progresses Rapidly

Regarding the highly anticipated stablecoins, Powell commented, "Cryptocurrency is gradually becoming mainstream, and establishing a legal framework for stablecoins is a good idea. Stablecoins may have broad appeal and should establish consumer protection measures." He expressed positive views on the stablecoin legislation efforts pushed by Congress, and Trump has also stated his hope to expedite the passage of this bill.

The Regulatory Framework for Stablecoins is Becoming Increasingly Clear

Under the push of the Trump administration, the specific process of stablecoin regulatory legislation in the United States is accelerating. On April 3, the U.S. House Financial Services Committee passed the "Stablecoin Tethering and Bank Licensing Enforcement (STABLE) Act" with 32 votes in favor and 17 against, and the bill will now move to the full House for consideration. The bill was co-sponsored by Republican representatives French Hill and Bryan Steil. During the committee hearing held on the 9th, Chairman Hill mentioned the approval of the bill, stating, "We have a responsibility to build on this momentum and continue to establish a comprehensive regulatory framework to clarify the rules of the digital asset market."

The approved bill aims to introduce a new compliance system, clarifying the issuance and use of U.S. dollar-backed digital assets. The bill particularly emphasizes the positioning of stablecoins as a "payment tool" while prohibiting offering interest to users.

On the Senate side, the Senate Committee on Banking, Housing, and Urban Affairs passed the "Growing and Enhancing Cyber-Resources Understanding Securities (GENIUS) Act" on March 13 by an overwhelming vote of 18:6. Committee Chairman Tim Scott commented, "This is a bipartisan and significant step forward to protect consumers and national security, while ensuring that the industry can achieve innovative development on U.S. soil."

The bill requires stablecoin issuers to maintain a 1:1 reserve, comply with anti-money laundering regulations, and ultimately aims to establish "common-sense rules" that can protect U.S. consumers and enhance the global status of the U.S. dollar. It is worth noting that stablecoin issuers providing yield are not within the scope of this legislation. The GENIUS Act has now been submitted to the full Senate for consideration, but it will require 60 votes to pass, with the Democratic Party's stance being key. Chairman Scott expressed his goal to complete the legislation before the first 100 days of President Trump's term (April 30, 2025).

On April 5, the SEC released new rules clarifying that certain stablecoins are not considered securities and may be exempt from trading reporting obligations. Some analysts believe that the stablecoins covered by the new SEC rules may not include those issued by industry giant Tether because the SEC stated that the acceptable reserves for stablecoins do not include precious metals or other crypto assets, both of which are included in Tether's reserves. In addition, the SEC also requires that any token must be redeemable for U.S. dollars at any time, while Tether's terms of service suggest that there may be minimum or delayed redemption amounts.

Related Reading: "Full Text of US SEC Stablecoin Regulation: What Kind of Stablecoin Is Not a Security?"

Division Exists Between House and Senate, Trump's WLFI Stablecoin May Impact Legislative Progress

While the House and Senate stablecoin bills remain generally aligned in their basic framework, there are still disagreements in areas such as algorithmic stablecoin regulation and the division of state and federal regulatory authority. Industry experts predict that if the GENIUS Act and the STABLE Act are merged after coordination, the legislation is expected to be completed before the August congressional recess. Ron Hammond, Government Affairs Director of the American Blockchain Association, predicts, "There will be a vote on the merged 'STABLE GENIUS Act' in the next 2-3 months."

In a March White House cryptocurrency summit, Trump explicitly stated his strong support for the legislative work on stablecoins and indicated his intention to sign the bill by August. Treasury Secretary Scott Bescent hinted at the same time that he would "consolidate the global reserve currency status of the US dollar through the stablecoin system." At the American Bankers Association (ABA) conference on April 9, Bescent reiterated that the Treasury Department is "carefully evaluating regulatory barriers for blockchain, stablecoins, and new payment systems" and stated that they are "considering reforms to unleash the enormous potential of the US capital markets."

With the strong push from the Trump administration, industry insiders predict that "2025 will be the watershed year for the widespread adoption of stablecoins." However, some Democratic lawmakers question potential conflicts of interest in the bill related to the Trump family's virtual currency DeFi project, "World Liberty Financial (WLFI)." Five Democratic senators wrote to the Federal Reserve and OCC, questioning the "unprecedented risks" posed by the USD1 stablecoin introduced by the Trump family-backed World Liberty Financial (WLFI) project. The letter pointed out that Trump, through a February executive order, weakened regulatory independence and holds a 60% stake in WLFI, creating a significant conflict of interest. Since its establishment in September 2024, WLFI has raised $550 million through two token sales and launched USD1 on the BNB chain and Ethereum on March 24. This move coincided with the Congressional consideration of the GENIUS Act, which may grant regulatory authority to the OCC and the Federal Reserve, raising concerns about the stability of the financial system.

Read More:《Trump Family Enters the Stablecoin Race? Everything You Need to Know About the "Presidential Stablecoin" USD1 on BSC》

The Complex and Far-reaching Impact of Tariffs

Regarding the recent tariff policies that have frequently caused significant market fluctuations, Powell stated, "The impact of tariffs on the economy may be greater than expected," "The tariff level has exceeded the optimistic expectations of the Federal Reserve," and "Currently, higher-than-expected tariffs may mean higher inflation and slower growth."

Although the original purpose of cryptocurrency was to be a financial instrument independent of government control, the price and market performance are still significantly affected by macroeconomic policies. Following the United States' announcement of a new global tariff policy on April 2, despite the general decline in global asset prices, Bitcoin's decline was relatively small, only 10%, while the S&P 500 index fell far more than this level (if calculated with a 1:1 correlation, Bitcoin should have fallen by 36%). This to some extent indicates that even during a market deep retracement, holding Bitcoin as part of an investment portfolio can still bring significant diversification benefits, highlighting its relative stability.

Tariffs raise the cost of cross-border transactions, potentially reducing global economic liquidity and capital inflows, decreasing the demand for speculative assets such as cryptocurrencies. In addition, tariffs on tech products, especially semiconductor chips and mining hardware, will significantly increase the mining costs of proof-of-work (PoW) cryptocurrencies such as Bitcoin, particularly in regions relying on Chinese-manufactured ASIC miners and GPUs, which may force miners to move to lower-cost regions or reduce operating scales, thereby impacting network security and market confidence.

Read More:《Mining Equipment Prices Rise by 24%, Trump's Tariff Policy Is Impacting the U.S. Bitcoin Mining Industry》

Tariffs may also indirectly affect the crypto market through exchange rate fluctuations. Historically, Bitcoin has had an inverse relationship with the US dollar, so when tariffs temporarily push up the dollar exchange rate, cryptocurrency prices are often under pressure. However, if tariffs trigger a trade war and lead to currency devaluation in certain countries, residents may turn to Bitcoin or stablecoins as a store of value, as seen in phenomena where crypto adoption surges in times of economic turmoil in countries like Argentina and Turkey.

Furthermore, the price increase of imported goods due to tariffs may trigger inflation, prompting central banks to raise interest rates, reducing the flow of funds into the crypto market. However, if inflation spirals out of control or trust in fiat currency collapses, Bitcoin may be seen as a safe-haven asset similar to gold, attracting investors seeking to hedge against inflation and currency devaluation.

The trade tension may further exacerbate regulatory scrutiny, with investors concerned that governments may take advantage of the situation to strengthen control over crypto assets, leading to increased market volatility. Different cryptocurrencies are affected by tariffs in different ways: Bitcoin may experience a short-term decline due to market risk-off sentiment but may benefit in the long term due to its "digital gold" properties; stablecoins, due to their stability, may become the preferred safe haven for traders in trade disputes; utility tokens dependent on specific blockchain use cases are more directly affected by their related industries. Tariffs on countries with concentrated mining activities (such as Canada, which accounted for 6.5% of Bitcoin mining electricity consumption in 2022) may directly disrupt the geographic distribution of mining activities, impacting market structure.

Related Reading: "History Repeating Itself: Grayscale Report Reveals New Safe-Haven Logic Amid Tariff Storm"

"Risk Warning" from Gary Gensler

Former U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler appeared on the CNBC program "Squawk Box" on the 16th, stating that he believes that certain cryptocurrencies like Bitcoin may have long-term survival potential, and that crypto assets as an investment target will undergo a screening process.

Gary Gensler stated that a few currencies like Bitcoin have garnered widespread attention globally, "Bitcoin may continue to exist for a long time because 7 billion people worldwide have shown strong interest in it."

During the interview, Gary Gensler discussed cryptocurrency as an aside to topics such as Trump's tariffs and the U.S.-China trade war, prompted by the host's question, "After you stepped down, the SEC under the Trump administration seemed to be withdrawing lawsuits against cryptocurrency companies. What are your thoughts on this?" To this, he simply responded by saying he was "stepping away from specific litigation." He further stated, "Cryptocurrency is only a small part of the financial markets, but since everyone is interested, I will talk about it." He then elaborated on the above points.

Gary Gensler also pointed out, "The trading of financial assets is based on fundamental value and market sentiment, but about 99% of cryptocurrency trading is purely driven by emotion." He also stated, "1,000 to 1,500 tokens, such as meme coins, which are driven by emotion, will lose their appeal in the long run for most people."

In the future, as regulatory frameworks continue to improve and market conditions gradually mature, cryptocurrencies and stablecoins may play a more important role in the global financial system.

Institutions and investors need to closely monitor policy dynamics and market trends to

seize a historic opportunity.

Welcome to join the official BlockBeats community:

Telegram Subscription Group: https://t.me/theblockbeats

Telegram Discussion Group: https://t.me/BlockBeats_App

Official Twitter Account: https://twitter.com/BlockBeatsAsia