Federal Reserve Chair Jerome Powell has expressed support for clear regulation of stablecoins, signaling a shift in the Fed's approach toward cryptocurrency oversight. Speaking at the Economic Club of Chicago, Powell acknowledged the mainstream potential of stablecoins and endorsed Congress's efforts to establish comprehensive regulatory frameworks. He suggested that past regulatory measures were overly conservative and indicated openness to loosening some banking regulations related to digital assets. The stablecoin market is projected to grow significantly, with estimates reaching $2 trillion by 2028. Industry reports highlight that companies like Coinbase, PayPal, and Visa are well-positioned to benefit from upcoming regulatory changes under the STABLE Act, which could reshape the U.S. stablecoin landscape by enforcing full-reserve requirements. Additionally, there is ongoing debate about balancing federal and state roles in stablecoin regulation, with calls for fair competition between issuers at both levels. Experts note that stablecoins have achieved product-market fit, showing organic, non-speculative use that is largely independent of broader crypto market cycles. Institutional interest is rising, with expectations of new stablecoin issuers entering the market in 2025. Stablecoins are increasingly recognized for their role in enhancing financial accessibility, stability, and payment speed globally.