🧵 OKG Research｜Powell Signals Shift on Bank Restrictions — Stablecoins Now Entering the Realm of Institutional Negotiation At the Economic Club of Chicago, Fed Chair Jerome Powell stated: “We issued restrictive guidance to banks on crypto… we may now look at loosening some of those rules.” This marks the beginning of a transition from regulatory exclusion to structured integration. 📎 Specifically, Powell was referring to two 2023 supervisory letters issued by the Federal Reserve: ➡️ SR 23-7: Requires state member banks to seek prior “supervisory non-objection” before engaging in crypto-related activities ➡️ SR 23-8: Prohibits banks from holding or issuing dollar-linked crypto tokens (i.e., stablecoins) Together, these letters have largely excluded banks from participating in the stablecoin ecosystem. 📌 Why is loosening now on the table? • The GENIUS Act proposes that the Fed oversee reserve auditing for stablecoins • The STABLE Act mandates high-quality liquid assets as reserves • Circle, PayPal, and others are actively seeking renewed partnerships with banking infrastructure → A structural reevaluation of the bank’s role is becoming inevitable. Powell’s remarks suggest: • A shift from prohibitive oversight to collaborative governance • Banks could re-enter as reserve custodians, liquidity channels, and on-chain settlement nodes This is not just a policy softening—it reflects the start of institutional positioning. ✅ OKG Research Insight: As stablecoins become mainstream, the regulatory question is no longer if they should be governed, but who governs, how integration occurs, and who guarantees settlement. Regulatory loosening is not an exit—it’s the beginning of institutional anchoring. #Stablecoin #GENIUSAct #STABLEAct #OKGResearch #DigitalDollar #Policy #FED #Crypto #JeromePowell #BankingRegulation