Fed Chair Jerome Powell’s recent speech discussed crypto becoming mainstream.
The Federal Reserve’s actions have often resulted in both positive and negative movements within the sector.
The web3 community has been meeting at a multitude of events this month. As the sector buzzes with activity, regulatory actions have also remained on the upside similar to March. However, prices continue to resist the snag they hit since the Tariff commotion.
Notably, in the last 24 hours, the US regulator, Federal Reserve’s Chairman Jerome Powell delivered a speech discussing current circumstances. The Fed Chair discussed a wide range of economic circumstances in his speech, from tariffs to inflation.
In regards to crypto, he noted that the digital assets sector is becoming more mainstream. The Fed Chair further also stated how due to this recent change, the regulations on stablecoins are a good move by the government. A few weeks ago, the US government announced working on a new regulation – the STABLE Act.
Moreover, Fed Chair Jerome Powell also warned about the tariffs affecting unemployment in the USA and other economic repercussions. He also discussed how banking regulations for crypto can be expected to be “partially relaxed” in the coming months. The Fed Chair has been seen remaining neutral in his stance towards crypto.
How Does the Fed’s Movements Impact Crypto?
Historically, the Federal Reserve has always had a strong impact on the digital assets sector. The Fed rate cuts continually play crucial roles in price movements. A reduction in CPI rates has often fueled a positive rally in Bitcoin.
Although the SEC deals directly with regulations, the Fed’s actions have a direct impact on prices. This regulator sets the overall economic environment within the country based on which crypto prices fluctuate.
However, under the Trump administration, the regulator and specifically Fed Chair Powell are under pressure. Recently, there were reports of Donald Trump making moves to fire Jerome Powell from his current position.
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