The regulatory landscape for stablecoins is rapidly evolving as the market gains mainstream acceptance. Fed Chair Jerome Powell recently hinted at a potential shift in crypto regulations, acknowledging a growing momentum towards stablecoin regulation driven by recent failures and fraud cases. This follows Congress’ push for clear legal frameworks for stablecoins, with House and Senate bills targeting consumer protections and transparency while aiming to fuel innovation within the banking system. The shift comes as the Federal Reserve considers easing bank regulatory restrictions on digital assets, a move aimed at promoting responsible innovation while ensuring consumer safety and stability. The U.S. banking industry is also adapting its policies, with agencies like the FDIC removing old guidance and replacing it with a framework allowing crypto-related bank activities without prior approval. This transition has been aided by the Office of the Comptroller of the Currency confirming that federally chartered banks can engage in digital asset operations. Stablecoin usage has soared as a result, attracting traders and remittance users alike. The global market value for stablecoins now stands at $227 billion, with USDC and USDT dominating the market with over 88% of all stablecoin value according to RWA.xyz. This new regulatory environment further bolsters recent efforts from the Trump administration’s President’s Council of Advisers on Digital Assets which aims to accelerate digital asset legislation. A key milestone was reached recently when the Senate passed the GENIUS Act, another significant step towards final legislation.