- Fed Chair Powell demands clearer cryptocurrency regulations to boost investor trust and combat market instability and deception effectively.
- Powell stated interest rate cuts won’t happen soon, citing persistent above-target inflation needing sustained improvement first.
Federal Reserve Chair Jerome Powell addressed two major financial topics on Monday. He advocated for definitive cryptocurrency regulations. He also indicated the Fed will maintain current interest rates for now. These statements occurred during a conference marking 75 years of the Fed’s international finance division.
Powell stated the cryptocurrency market requires clearer regulatory guidelines. He described existing rules as insufficient for current digital asset activities. Powell believes well-defined regulations would increase investor confidence across the market. He specifically mentioned the need for rules covering stablecoins and decentralized platforms. Multiple U.S. agencies currently oversee different aspects of crypto, creating a complex patchwork.
On June 2, 2025, Chair Powell delivered opening remarks at the @federalreserve’s International Finance Division 75th Anniversary Conference: https://t.co/c2WNQchiFj pic.twitter.com/j2nd2pobgo
— Federal Reserve (@federalreserve) June 2, 2025
“Clear rules help legitimize crypto, drive out bad actors, and restore trust,” Powell stated. His remarks respond to ongoing discussions about which agency holds authority over various crypto products. This push for regulatory clarity comes as digital assets see wider use.
Separately, Powell addressed monetary policy and inflation. He stated interest rate cuts are not imminent. Recent data shows inflation remains above the Federal Reserve’s target level. Powell emphasized the need for “real, sustained progress” on lowering inflation before considering rate reductions. This stance aligns with the Fed’s previous communications but cools market expectations for near-term easing.
Following Powell’s comments, Bitcoin’s price rose above $105,000. Market participants interpreted his balanced tone on crypto regulation positively, despite the cautious message on rates.
Adding context, the Organisation for Economic Co-operation and Development (OECD) recently updated its economic outlook. The OECD projects U.S. economic growth will slow. It estimates growth at 2.8% for 2024, declining to 1.6% in 2025, and 1.5% in 2026.
The OECD also noted potential economic risks linked to proposed new tariffs from President Trump. These tariffs could further impact growth and create policy complications. Powell’s commitment to stable rates reflects this broader economic picture of moderating growth and persistent price pressures.
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