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DeFi Will Not Bite: US Fed Relieves Mainstream’s Fear

2 mins
Updated by Oihyun Kim
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In Brief

  • Fed Governor Waller encourages financial industry to embrace DeFi technology as innovative payment system advancement.
  • Vice Chair Bowman urges regulators to abandon overly cautious stance and actively support blockchain innovation.
  • DeFi markets surged after Fed officials announced plans to integrate digital assets into mainstream finance.
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Top Federal Reserve leaders are signaling a significant shift toward accepting blockchain technology and stablecoins within the financial mainstream. 

The Fed officials delivered remarks at Wyoming’s 2025 Blockchain Symposium that support Trump’s pro-crypto policies and signal regulatory evolution.

DeFi Is Simply a New Technology

In a speech on Wednesday, Governor Christopher Waller described a technology-led revolution in the payments system and urged the financial industry not to fear change. “There is nothing scary about this just because it occurs in the decentralized finance or DeFi world—this is simply new technology to transfer objects and record transactions,” he said.

“There is nothing to be afraid of when thinking about using smart contracts, tokenization, or distributed ledgers in everyday transactions.”

He offered a particularly positive outlook on stablecoins, noting they can expand the US dollar’s international role. Waller highlighted how stablecoins give users in underbanked countries a new way to conduct real-time, dollar-based transactions.

In a speech on Tuesday, Vice Chair Michelle Bowman called for an even more proactive shift in regulatory thinking. She declared that bank regulators have been overly cautious and conservative in the past and that it is time to embrace technological innovation actively.

She identified that blockchain and asset tokenization could improve payment and title transfer efficiency dramatically. Citing the GENIUS Act, Bowman confirmed that federal banking supervisors have already started designing a clear regulatory framework for stablecoins.

Markets Rally on Positive Outlook

The unified message from two of the Fed’s most senior officials sends a clear signal: US regulators intend to integrate digital assets into the national financial framework. The shared goal of establishing clear rules for stablecoins and modernizing supervisory approaches immediately resonated with the market.

Following Wednesday’s release of the remarks, investors rushed to buy leading DeFi protocols. AAVE, a major DeFi coin, rose 7.90%, while UNI climbed 6.63%.

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Paul is a Senior Researcher at Bincrypto's Korea team. He has worked as a journalist for approximately 14 years at domestic media outlets, including CoinDesk Korea. Paul majored in Chemistry and Journalism in college and is deeply interested in crypto, AI, and society.
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