Federal Reserve Chair Jerome Powell has once again voiced strong support for legislation regulating stablecoins, emphasizing that a legal framework is long overdue. Speaking at the Economic Club of Chicago on April 16, Powell said the evolving cryptocurrency industry has shown legitimate use cases, despite past setbacks marked by widespread failures and frauds in 2022 and 2023.

Powell revealed the Fed had previously collaborated with Congress to introduce a legal framework for stablecoins, though those efforts failed. However, he believes that with crypto becoming more mainstream, lawmakers are finally revisiting the issue. “We need that. There isn’t one now,” Powell stressed, calling regulation of stablecoins a “good idea” depending on the bill's specifics.

This is not Powell’s first appeal for oversight. Back in June 2023, he told the House Financial Services Committee that stablecoins were “a form of money” and required “robust” federal supervision.

Momentum for stablecoin legislation is gaining traction under President Donald Trump’s administration. Earlier this year, Trump established the President’s Council of Advisers on Digital Assets, led by Bo Hines. Hines has stated that creating a comprehensive stablecoin law is a top priority, especially after the Senate Banking Committee advanced the GENIUS Act. A finalized bill could reach the president’s desk within two months.

Stablecoins, especially those pegged to the US dollar like USDC and USDt, are widely used for remittances and crypto trading. Combined, they represent over 88% of the $227 billion stablecoin market, according to RWA.xyz. With regulation on the horizon, the U.S. could position itself as a global leader in digital finance.