Powell Backs Fed Stablecoin Policy Proposal as Warsh Abstains
The Federal Reserve’s proposed rulemaking sets out how U.S. crypto companies would need to screen stablecoin customers following passage of the GENIUS Act. Jerome Powell supported the proposal, while Fed Chair Kevin Warsh abstained.
What happened?
The Federal Reserve’s proposed rulemaking sets out how U.S. crypto companies would need to screen stablecoin customers following passage of the GENIUS Act. Jerome Powell supported the proposal, while Fed Chair Kevin Warsh abstained.
Why it matters
The development matters because stablecoin oversight is becoming a more formal part of U.S. crypto regulation. For companies operating in the sector, customer screening rules could shape compliance expectations around stablecoin issuance, distribution, or related services.
Jerome Powell has supported the Federal Reserve’s new stablecoin policy proposal, while Fed Chair Kevin Warsh abstained, according to Decrypt. The proposed rulemaking outlines how U.S. crypto companies would be required to screen stablecoin customers after the passage of the GENIUS Act.
The development matters because stablecoin oversight is becoming a more formal part of U.S. crypto regulation. For companies operating in the sector, customer screening rules could shape compliance expectations around stablecoin issuance, distribution, or related services.
The proposal comes in the wake of the GENIUS Act, which the source identifies as the legislative backdrop for the rulemaking. That connection signals that federal agencies are moving from statutory authority toward implementation details for businesses that handle stablecoin activity.
Powell’s support indicates backing for the Fed’s approach, while Warsh’s abstention leaves a notable split in how the proposal was received at the leadership level. The source does not state Warsh’s reason for abstaining.
For crypto firms, the central question now is how the final screening framework will be defined and enforced. The rulemaking process is expected to determine the practical obligations companies will face under the new stablecoin policy regime.