Federal Reserve signals major shift on cryptocurrency at historic conference
The Federal Reserve hosted its first-ever conference focused on cryptocurrency and digital payments on October 21, 2025, marking what officials described as a “new era” in the central bank’s approach to digital assets. Federal Reserve Governor Christopher Waller opened the event by declaring that the DeFi industry is now “welcomed to the conversation on the future of payments” rather than viewed with suspicion, signaling a dramatic departure from the regulatory caution that defined previous years.
Embracing digital assets
During his opening remarks at the Payments Innovation Conference in Washington, Waller emphasized that distributed ledgers and crypto assets are “woven into the fabric of the payment and financial systems”. The conference brought together representatives from major cryptocurrency and blockchain companies, including Chainlink, Ripple, JPMorgan, and BlackRock, to discuss the integration of traditional finance with the digital asset landscape.
“The DeFi industry is not viewed with suspicion or scorn. Rather, today, you are welcomed to the conversation on the future of payments in the United States — on our home field.”
— Governor Christopher Waller
The Fed’s shift represents an acknowledgment that crypto-assets are “no longer on the fringes” of the financial system. Bitcoin’s price responded positively to the announcement, rising from around $108,000 to over $110,000 during the conference.
“Skinny master accounts”
In a significant policy announcement, Waller revealed that the Federal Reserve is proposing limited access “skinny master accounts” that would provide legally eligible institutions direct access to Federal payment rails. These accounts would enable cryptocurrency firms and stablecoin issuers to transfer large amounts swiftly through the Fedwire payment system, bypassing the need to engage traditional banks as intermediaries.
Master accounts have been a highly sought objective for the cryptocurrency industry, as they allow firms to settle transactions directly with the central bank. The Fed has historically been cautious in granting these requests, categorizing applicants based on whether they are insured by the Federal Deposit Insurance Corporation and typically denying applications from lower-tier entities. The new “skinny” version would provide more limited functionality but represent a breakthrough for digital asset firms seeking integration with traditional payment infrastructure.
Regulatory rollback under Trump Administration
The conference follows a series of regulatory changes initiated by the Trump administration throughout 2025 aimed at fostering cryptocurrency adoption. In April, the Federal Reserve withdrew supervisory letters that had required banks to obtain prior authorization before engaging in crypto-asset and stablecoin activities. The Fed also rescinded 2023 guidance that had urged banks to exercise caution regarding cryptocurrency’s volatility, legal ambiguities, and liquidity challenges.
Additionally, in August 2025, the Federal Reserve scrapped its “novel activities” supervision program specifically created to police banks on their crypto and fintech activities, integrating that oversight into regular bank supervision instead. Fed Governor Michelle Bowman suggested in August that central bank staff should be permitted to own small amounts of crypto products, arguing that personal experience would better inform their regulatory work.
Congressional action on stablecoins
President Trump signed the GENIUS Act into law in July 2025, establishing the first comprehensive federal regulatory framework for stablecoins—digital currencies pegged to stable assets like the U.S. dollar. The legislation, which passed with strong bipartisan support, requires stablecoin issuers to back their tokens with high-quality liquid assets and transparently disclose their reserves.
The House also passed the Anti-CBDC Surveillance State Act, which prohibits the Federal Reserve from issuing a central bank digital currency directly to the public. Republican supporters of the ban cite concerns about government surveillance and programmable money, pointing to China’s digital yuan as a cautionary example.
Strategic Bitcoin reserve
In March 2025, President Trump signed an executive order establishing a strategic bitcoin reserve funded by cryptocurrencies the federal government has seized through criminal or civil asset forfeiture. White House crypto advisor David Sacks described the reserve as “a digital Fort Knox” for what is often called “digital gold”. Trump announced the reserve would include five cryptocurrencies: Bitcoin, Ethereum, XRP, Solana, and Cardano.
Industry perspective on mainstream adoption
During a session at the Fed conference, Fernando Terrés, CEO of DolarApp, emphasized that decentralized finance must simplify its complexity to attract mainstream users. He compared the current DeFi experience to the cumbersome early days of dial-up internet, arguing that mass adoption will only occur when blockchain technology is seamlessly integrated into consumer-friendly products addressing real-world problems.
“DeFi and crypto still feel far away enough. No one knows how their phone works or the internet—almost nobody. But, everyone knows how to use them. Crypto, blockchain, stablecoins need to be just like that.”
— Fernando Terrés, CEO of DolarApp
The Federal Reserve’s embrace of cryptocurrency at its inaugural payments innovation conference represents a watershed moment for an industry that has long sought regulatory clarity and legitimacy. The proposals for expanded payment rail access and the broader regulatory rollback under the Trump administration signal the central bank’s recognition that digital assets have become an integral part of the evolving financial landscape.