Powell Eases Crypto Banking Rules, But Lawmakers Remain Skeptical

Both argue that the Fed’s moves amount to little more than lip service, rather than genuine regulatory reform.

Their criticism comes after Trump reaffirmed Powell’s independence, quashing rumors that he might fire the Fed chief. However, critics claim Powell’s response to Trump’s January 23 executive order — aimed at promoting open banking access — has been half-hearted.

According to a Federal Reserve Board update, supervisors have withdrawn specific crypto-related guidance. Banks are no longer expected to provide advance notice before engaging in crypto-asset activities, and the cumbersome non-objection process for stablecoin activities has been eliminated.

Additionally, restrictions around crypto exposures have been somewhat relaxed. Yet despite these moves, some lawmakers and industry insiders argue that the changes do not go far enough to truly open banking services to the crypto sector.