Federal Reserve Chair Revises Crypto Guidelines, Supports New Legislation – Coincu

Federal Reserve Chair Jerome Powell spoke before the U.S. Congress on June 24, 2025, addressing revisions and withdrawals of past cryptocurrency guidelines. The Federal Reserve seeks clearer oversight.

Jerome Powell’s comments potentially alleviate regulatory uncertainty for banks exploring digital assets. The market might see increased institutional investments.

Powell Advocates for GENIUS and CLARITY Acts, Paving Way for New Crypto Era

Federal Reserve Chair Jerome Powell testified on June 24, withdrawing restrictive crypto guidelines. Bank participation in crypto remains unfettered, though Powell stressed responsible exploration. His testimony clarified no pursuit of crypto purchase authority by the Fed. The central focus lies in financial stability and responsible risk management rather than direct market intervention.

Supporting the GENIUS and CLARITY Acts, Powell’s legislative backing suggests potential regulatory advancements in stablecoin and broader crypto markets. Immediate implications include heightened industry interest and increased clarity for institutional actors, potentially leading to significant market engagement.

“Banks are not banned from engaging in crypto… the Federal Reserve is not here to block banks from exploring crypto, only to ensure they do so responsibly,” said Jerome Powell, Chair of the Federal Reserve.

Bitcoin Surges Post Federal Notice: Regulatory Clarity Boosts Confidence

Did you know? Powell’s advocacy of the GENIUS Act echoes previous stablecoin clarity efforts, which traditionally lead to regulatory harmony and stimulate institutional engagement.

Bitcoin (BTC) demonstrated stable performance, priced at $107,120.87 with a market cap of $2.13 trillion, and captured 64.61% of market share as of June 25, 2025. According to CoinMarketCap, the 24-hour trading volume decreased by 24.17%, though prices enjoyed a 1.43% uptick. Longer-term price shifts showed an overall 22.47% gain over 90 days.

From the Coincu research team, potential outcomes for financial markets could center around more integrated regulation, fostering secure environments for stablecoin use and broader crypto integration into mainstream finance. Enhanced clarity could bolster investor confidence and may increase innovation in blockchain technologies, reflecting historical trends of regulatory-driven growth in asset adoption.