Powell Eases Crypto Banking Rules, But Lawmakers Remain Skeptical
Despite announcing rollbacks on crypto-related restrictions, Federal Reserve Chairman Jerome Powell faces skepticism from prominent voices like Senator Cynthia Lummis and Wyoming politician Caitlin Long.
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According to a Federal Reserve Board update, supervisors have withdrawn specific crypto-related guidance.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.
Kosta has reported on cryptocurrency markets and blockchain infrastructure since 2020, bringing over six years of hands-on experience in the crypto industry built through daily tracking of markets, trends, and emerging blockchain developments. Specializing in Bitcoin on-chain analysis, institutional ETF flows, and digital asset price action, his work at Coindoo has been cited by other news agencies and consistently covers market developments with a focus on data-driven reporting across Bitcoin, Ethereum, Solana, and XRP. Over the years, Kosta has contributed to multiple crypto media outlets in different regions, authoring over 6,000 articles across the sector. His reporting spans cryptocurrency markets and the broader fintech industry, tracking not only price action but also the technological and regulatory forces shaping the ecosystem. To support his analysis, Kosta actively leverages on-chain data and metrics from leading platforms such as Santiment, Glassnode, and CryptoQuant, enabling deeper, evidence-based market insights. He believes in the power of transparency and the data that underpins the blockchain ecosystem. His academic background in Marketing Management from Denmark further complements his analytical approach, adding a strong understanding of communication strategy and content positioning to his work.
