🧵 OKG Research | Powell wants to relax banking regulation? Stablecoins have become a part of institutional negotiations At the Chicago Economic Club, Fed Chairman Jerome Powell stated: Our guidance on banks and cryptocurrency assets is very conservative... We may consider relaxing some rules This is the beginning of the regulatory mechanism shifting towards "negotiated absorption". 📎 Behind it specifically refers to two regulatory letters issued by the Federal Reserve in 2023: ➡️ SR 23-7： Banks engaged in cryptocurrency related business need to apply for 'no objection' in advance ➡️ SR 23-8： Prohibit banks from holding or issuing US dollar pegged encrypted tokens (i.e. stablecoins) The two constitute the main institutional reasons why banks cannot participate in the stablecoin ecosystem. 📌 Why is loosening now an option? GENIUS Act proposes to have the Federal Reserve audit stablecoin reserves The STANBLE Act requires issuers to hold high-quality liquid assets Circle, PayPal, and others are already attempting to reconnect with the banking system The repositioning of the "institutional role" of banks is inevitable. Powell's statement implies: Regulatory logic is transitioning from 'restrictions' to' structural negotiation ' Banks may re-enter the ecosystem as reserve custodians, liquidity channels, and clearing nodes for stablecoins in the future This is not just a market friendly signal, but a manifestation of the system entering a 'defining period'. ✅ OKG Research's viewpoint: When stablecoins become mainstream, the issue of regulation is no longer about 'no matter what', but about 'who will manage, how to integrate, and how to guarantee'. Regulatory loosening is not an exit, but a signal of institutional positioning activation. Stablecoin GENIUSAct STABLEAct OKGResearch DigitalDollar Policy FED Crypto JeromePowell Bank