Fed's Powell Says US Is Advancing Stablecoin Framework

Federal Reserve Chair Jerome Powell said the United States is "well on the way" to establishing a regulatory framework for crypto-linked stablecoins, calling the emerging asset class a "positive step" for the financial system. Speaking on July 1, Powell added that policymakers recognize the need for clear rules governing stablecoins and are making progress toward that goal. While Powell did not outline a specific timetable or legislative path, his comments signal growing momentum in Washington to clarify oversight of dollar-pegged digital tokens, which are increasingly used for payments and trading in cryptocurrency markets. The remarks follow months of debate among U.S. regulators and lawmakers over how to safeguard consumers and the broader financial system as stablecoin adoption expands.