Fed Chairman Powell said that stablecoins need to develop a legal framework, and Bitcoin outperformed the stock market

Ball noted that the U.S. Congress (both the Senate and the House of Representatives) is working on a legal framework for stablecoins. “Depending on the content, it could be a good idea,” he said. “We do need a framework for that. We don’t have one right now.”

Powell also said stablecoins could have "quite broad appeal."

Powell's remarks further stimulated the stock market. Yesterday, all three U.S. stock indexes fell because Powell's remarks hinted that Trump was not in a hurry to cut interest rates or rescue the market. The market believed that Powell's sudden mention of stablecoins was a plan to use stablecoins to resolve the U.S. debt crisis. Influenced by this news, the stock market fell far more than the currency market.

Powell has previously said that Bitcoin (BTC) could serve as “digital gold.” In a recent speech, Powell said that due to the much-anticipated tariffs, which are much larger than expected, there will be higher inflation and slower economic growth in the future. He also noted that U.S. economic growth has slowed compared to last year.

With the Nasdaq 100 index closing at 18,257 points yesterday, it is less than 300 points away from entering the bear market again (a 20% drop from the high), but Bitcoin has been more stable recently, and has remained at the $80,000 level even on Trump’s tariff "Liberation Day" announced on April 2.