When Jerome Powell stepped up to speak at The Economic Club of Chicago today, April 16, 2025, most expected a safe, policy-focused update. Inflation, jobs, the economy—those were the headlines.
But something unexpected happened after the main speech.
During the Q&A session, Powell made rare, positive comments about cryptocurrency—specifically stablecoins. And while his prepared remarks, published by the Federal Reserve Board, made no mention of digital assets, his off-the-cuff responses could ripple through the crypto world for months.
Let’s dive into what happened, why it matters, and what comes next.
What Powell Officially Said in His Speech
Powell’s formal speech, shared by outlets like Bloomberg and CNBC, focused heavily on the economic outlook.
He talked about the Federal Reserve’s dual mandate: maximum employment and stable prices. He noted the labor market was strong, even though inflation stayed slightly above the Fed’s 2% goal. Powell also addressed new challenges, like slower GDP growth in early 2025 and the economic risks of new tariff policies under President Trump.
Crypto, however, wasn’t mentioned at all in the official transcript.
At first glance, it seemed like just another cautious economic update before the next Federal Open Market Committee meeting in May.
What Happened During the Q&A Session
The real surprise came after the speech.
During the Q&A, Powell reportedly addressed cryptocurrency—specifically stablecoins—in a much more open tone.
According to BH NEWS, Powell called stablecoins “very useful” and said that a legal framework for them would be a good idea. He also suggested that easing certain banking regulations could foster innovation while still keeping banks safe.
Wolfy Wealth also reported that Powell acknowledged how crypto is becoming more mainstream, and highlighted the importance of building guardrails that allow growth without risking financial stability.
These remarks were not part of the prepared remarks and were instead responses to audience questions. That’s why major media like Bloomberg and CNBC didn’t mention them in their main coverage. But crypto news outlets and social media were quick to spot the significance.
Why Powell’s Comments Matter for Crypto
Stablecoins like Tether (USDT) and USD Coin (USDC) are major pillars of the crypto economy. They serve as bridges between traditional money and decentralized finance (DeFi).
By calling stablecoins useful and supporting a legal framework, Powell gave them a new level of credibility.
Until now, stablecoins have existed in a regulatory gray zone. Powell’s remarks suggest a future where they could become fully accepted financial tools, regulated in a way that encourages banks and big financial players to finally jump in.
It also hints at a possible shift toward more balanced crypto regulation—where innovation is encouraged rather than stifled.
This fits into broader signs of a changing attitude, like the SEC’s recently softened stance toward crypto companies.
How the Markets Reacted
Despite Powell’s supportive tone, Bitcoin slipped after the event, dropping to around $84,000.
Why the dip? It likely had more to do with broader concerns over tariffs, inflation, and slowing economic growth than anything Powell said about stablecoins.
Meanwhile, analysts like those at Wolfy Wealth pointed out that Powell’s remarks could be particularly good for Ethereum and DeFi platforms, which heavily rely on stablecoins to operate.
The timing is key: Powell’s hints came just weeks before major Fed decisions that could further shape the market.
A Larger Context: Tariffs, Inflation, and Crypto’s Role
Powell’s main job today was to reassure markets facing new turbulence from tariff policies and global uncertainty.
Still, his openness toward stablecoins shows that crypto is becoming too big to ignore—even in traditional finance circles.
Social media posts from crypto influencers like Go Moon Dave and BlockOwlCrypto highlighted how unusual it was to hear a Fed chair speak positively about crypto innovation in a public setting, even if only during Q&A.
That’s why Powell’s comments—while easy to miss—could be the start of something bigger.
What Comes Next?
Here’s what to watch for in the weeks ahead:
- Will the Fed or other agencies propose formal stablecoin regulations?
- How will the FOMC’s May decisions affect crypto markets?
- Could Powell’s remarks push more banks and institutions to explore stablecoin projects?
Crypto is evolving fast, and regulation is catching up. Powell’s Q&A might not make front-page headlines today, but it could end up being a milestone moment for the future of digital assets.
Final Thoughts
Jerome Powell didn’t officially announce a crypto revolution. But in just a few sentences, he showed that stablecoins—and by extension, much of the crypto economy—are being taken more seriously by the highest levels of financial leadership.
Crypto enthusiasts should keep a close eye on what follows. Regulatory clarity could unlock major new opportunities—and it looks like that clarity is finally on the horizon.
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