The Fed Chair emphasizes the necessity of a stablecoin regulatory framework, supporting interaction between the banking sector and the digital asset industry.

Recently, Fed Chairman Jerome Powell reiterated the importance of establishing a regulatory framework for stablecoins during a speech at the Chicago Economic Club, while stating that the Fed does not intend to limit the interaction between the banking industry and the digital asset sector.

Powell pointed out that in light of the increasing importance of digital tools such as stablecoins, establishing a corresponding regulatory framework has become very necessary. He noted that although previous cooperation with Congress on the legal framework for stablecoins had not been successful, the current situation is changing, and legislators are showing new interest in formally establishing regulatory provisions.

Regarding the content of the regulatory framework, Powell emphasized that it should include consumer protection measures and provisions to ensure transparency. He added: "Stablecoins, as a digital product, could actually have a quite broad appeal."

When discussing the Fed's stance on banking activities related to digital assets, Powell acknowledged that U.S. banking regulators have taken a relatively conservative approach in formulating guidance for banks managing digital asset exposures. However, he stated that some guidance may be relaxed to accommodate responsible innovation, as long as consumer rights and financial safety can be ensured.

Powell stated: "We will try to make adjustments in a way that maintains the safety and soundness of the financial system." This statement further elaborates on his previous remarks that the Fed has no intention of preventing banks from serving legitimate digital asset clients.

Earlier this year, Powell stated clearly during his testimony in Congress that under the current regulatory framework, digital asset activities are already being conducted within banks regulated by the Fed. He used digital asset custody as an example, illustrating that if banks and regulators understand the scope of these activities, they can safely provide such services.

Powell also acknowledged that integrating digital assets into the regulatory framework of traditional finance is quite complex, calling for a more comprehensive regulatory structure. After the Federal Open Market Committee meeting in February of this year, he stated that while the barriers for banks to participate in digital asset businesses remain high, the Fed does not intend to cut off banking services to legally operating digital asset companies.

At the same time, the use of stablecoins in payments and digital settlements continues to grow. Last year, the transfer amount of stablecoins approached $14 trillion, surpassing Visa's transaction volume. Currently, the U.S. has not established a federal regulatory framework specifically for stablecoins, but Congress has introduced several legislative proposals, among which the most notable include the GENIUS Act and the STABLE Act.

The Fed's latest stance indicates that as stablecoins become increasingly integrated into the global financial market, U.S. financial authorities are more willing to engage in the formulation of digital asset policies. Powell's statement also suggests that the Fed supports Congress's efforts to establish formal rules for stablecoins, provided that such legislation strikes a balance between innovation and risk control.