The U.S. financial world is buzzing after Bill Pulte, director of the Federal Housing Finance Agency (FHFA), hinted on X that Federal Reserve Chair Jerome Powell could be preparing to resign. Pulte described an upcoming “resignation speech,” though he later clarified that Monday’s scheduled address may be unrelated.
His comment, though short and somewhat ambiguous, has set off a wave of speculation. With Powell slated to speak soon, many are wondering: is something bigger going on behind the scenes?
BREAKING: Fed Chair Jerome Powell’s resignation may be imminent…
Federal Housing Director Bill Pulte says his “resignation speech is coming soon.”
Why it matters:
• Markets: A surprise exit could spike volatility as uncertainty hits Wall Street • Interest Rates:… pic.twitter.com/RmlJMwqhH3
This isn’t the first time Pulte has aimed at Powell. Over the past several months, he has criticized the Fed Chair’s approach to monetary policy, including:
Persistently high interest rates
A $2.5 billion renovation project for the Federal Reserve’s headquarters
The overall tightening stance that Pulte says is damaging the housing market
Pulte even drafted a letter urging former President Trump to consider removing Powell and has shown support for an investigation into the Fed’s actions under his leadership.
Growing Tensions Between the Fed and Trump Allies
The remarks also reflect broader political tensions. Trump-aligned officials, including new Treasury Secretary Scott Bessent, have questioned the Fed’s independence and priorities, particularly the decision to delay rate cuts amid signs of slowing inflation.
Although Powell has consistently said he plans to finish his term, which ends in May 2026, the pressure is mounting.
What to Expect From the Upcoming Jerome Powell Speech
For now, there’s no confirmation of a resignation. But with Powell scheduled to speak Monday, the timing of Pulte’s post has sparked fresh interest. Market watchers will be listening closely, not just for policy clues, but for any unexpected announcements.
Whether or not this turns into something bigger, one thing is clear: Jerome Powell’s leadership at the Fed is once again under the microscope.
FAQs
Is Jerome Powell resigning?
There is no official confirmation that Jerome Powell is resigning. However, FHFA Director Bill Pulte hinted at a possible “resignation speech,” which sparked speculation. Powell has publicly stated he intends to serve through the end of his term in May 2026.
What did Bill Pulte say about Jerome Powell’s resignation?
Bill Pulte, director of the FHFA, posted on X about a possible “resignation speech” from Jerome Powell. Although he later clarified the speech may be unrelated, his comment raised questions about Powell’s future at the Fed.
Who could replace Jerome Powell if he resigns?
There’s been no official discussion of a successor. If Powell were to step down, the decision would fall to the President and would likely require Senate confirmation.
When is Jerome Powell’s next speech?
Powell is scheduled to speak on Tuesday, July 22, 2025, at 8:30 a.m. ET at the Integrated Review of the Capital Framework conference in Washington, D.C.
US President Donald Trump has warned of what could happen to the US economy if the Fed Chair Jerome Powell refuses to act fast and cut interest rates. This is significant considering how a slowdown in the US economy could impact the crypto market.
Donald Trump Sounds Warning If Jerome Powell Refuses To Cut Rates
In a Truth Social post, Donald Trump stated that there can be a “slowing of the economy” unless Fed Chair Jerome Powell lowers interest rates. He affirmed that, with costs trending downward, it is almost impossible for inflation to occur, but a recession may be on the cards if Powell and his team fail to act.
This marks the US president’s latest call to Powell to cut interest rates. Trump alluded to the fact that the EU has already lowered rates seven times while the Fed Chair is yet to act. Interestingly, he accused Powell of lowering rates only last year to help Joe Biden and Kamala Harris win the Election, although that didn’t ultimately happen.
Despite Donald Trump urging Jerome Powell to cut rates, the Fed Chair has so far shown that has has no intention to lower interest rates. Instead, in a recent speech, Powell warned that Trump’s tariffs could lead to higher US inflation, suggesting that this is why the FOMC is refusing to ease its monetary policies just yet.
Meanwhile, with Powell refusing to lower interest rates, there are discussions that the US president could soon fire the Fed Chair. However, traders are betting against this happening and assert there is little chance it will happen this year.
Market expert Anthony Pompliano warned Trump against firing Powell, while Senator Elizabeth Warren stated that the stock market would crash if the US president did so. There is also the possibility that the crypto market could crash alongside the stock market.
Despite Jerome Powell’s hesitation to heed Donald Trump’s calls to lower interest rates, experts still predict that there will be several Fed rate cuts this year. Citigroup expects the Fed to deliver an interest rate cut in June and maintains that there will be a total of 125 basis points (bps) of cuts this year.
Bank of America also recently predicted that there will be four interest rate cuts this year. They expect the first one to come at the May FOMC meeting, with the others coming in July, September, and December, respectively.
Regulatory sandboxes have emerged as a concept to drive innovation in a controlled setting. They allow companies to test new crypto products and services while regulators observe and adapt regulations. While jurisdictions like the UK, the UAE, and Singapore have already created sandboxes, the US has yet to create one at the federal level.
BeInCrypto spoke with representatives of OilXCoin and Asset Token Ventures LLC to understand what the US needs to build a federal regulatory sandbox and how it can unify a fragmented testing environment for innovators.
A Patchwork Approach
As the name suggests, regulatory sandboxes have emerged as a tool for providing a controlled testing ground. This environment allows entrepreneurs, businesses, industry leaders, and lawmakers to interact with new and innovative products.
According to the Institute for Reforming Government, 14 states in the United States currently have regulatory sandboxes for fintech innovation.
Of those, 11 are industry-specific and cover other sectors like artificial intelligence, real estate, insurance, child care, healthcare, and education.
Utah, Arizona, and Kentucky are the only jurisdictions among these states with an all-inclusive sandbox. Meanwhile, all but 12 states are currently considering legislation to create some regulatory sandbox for innovation.
Due to its relatively short existence, the crypto market has underdeveloped legislation. While state-level sandboxes enable innovators to demonstrate their products’ capabilities to the public, they are significantly constrained by the lack of federal regulatory sandboxes.
The Need for Federal Oversight
Though statewide efforts to create regulatory sandboxes are vital for innovation, entrepreneurs and businesses still face constraints in developing across borders or reaching an audience at a national level.
Rapid advancements in fields like blockchain and artificial intelligence (AI) add a particular layer of uncertainty, given that existing legal frameworks may not be well-suited to these technologies.
At the same time, regulators may face difficulties in developing appropriate rules for these technologies due to a potential lack of familiarity with these constantly changing industries.
As a result, industry participants are increasingly calling for creating a federal regulatory sandbox. This environment could be a collaborative framework to address the gap, facilitating communication and knowledge sharing between regulators and industry stakeholders.
“The implementation of a federal regulatory sandbox in the United States has the potential to significantly enhance both innovation and regulatory oversight by reducing the uncertainties often associated with navigating the regulatory landscape across state lines. Such an initiative could help establish a coherent framework characterized by uniformity, continuity, and a conducive environment for innovation,” said Paul Talbert, Managing Director of ATV Fund.
According to Rademacher and Talbert, this proposal would meet the needs of all players involved.
Benefits of a Federal Regulatory Sandbox
A sandbox provides innovators with a controlled environment to test products under regulatory oversight without the immediate burden of full compliance with rules that may not yet fit their technology.
It also allows regulators to acquire firsthand insights into blockchain applications, facilitating the creation of more knowledgeable and flexible regulatory policies.
“Startups should have clear eligibility criteria to determine their qualification for participation, while regulators must outline specific objectives—whether focused on refining token classification frameworks, testing DeFi applications, or improving compliance processes,” Rademacher said.
It could also help the United States reinforce its position as a leader in technological innovation.
“By fostering innovation through simplicity, regulatory certainty, and conducive environments, the United States can significantly strengthen its competitive position in the global fintech landscape,” Talbert added.
While the United States has stalled in creating a federal framework for fintech innovation, other jurisdictions around the world have already gained significant ground in this regard.
Global Precedents
The Financial Conduct Authority (FCA), which regulates the United Kingdom’s financial services, launched the first regulatory sandbox in 2014 as part of Project Innovate. This initiative aimed to provide a controlled environment for testing innovative products.
The government asked the FCA to establish a regulatory process to promote new technology-based financial services and fintech and ensure consumer protection.
The United Arab Emirates (UAE) and Singapore, in particular, have made progressive strides in creating federal regulatory sandboxes.
The UAE, for example, currently has four different sandboxes: the Abu Dhabi Global Market (ADGM) Regulation Lab, the DSFA Sandbox, the CBUAE FinTech Sandbox, and the DFF Regulation Lab.
Their focus areas include digital banking, blockchain, payment systems, AI, and autonomous transport.
Meanwhile, the Monetary Authority of Singapore (MAS) launched its Fintech Regulatory Sandbox in 2016. Three years later, MAS also launched the Sandbox Express, providing firms with a faster option for market testing certain low-risk activities in pre-defined environments.
“The success of regulatory sandboxes in jurisdictions such as the United Kingdom, Singapore, and the United Arab Emirates has highlighted the importance of key attributes: regulatory collaboration, transparent processes, continuous monitoring, and the allocation of dedicated resources. As a result, a growing number of jurisdictions worldwide are looking to replicate the frameworks established by these pioneering countries to strengthen their competitive position in the global fintech landscape,” Talbert said.
Rademacher believes these jurisdictions’ innovations should prompt the United States to accelerate its progress.
For that to happen, the United States must overcome certain hurdles.
Challenges of a Fragmented US Regulatory Landscape
A fragmented network of federal and state agencies overseeing financial services presents a key challenge to establishing a US federal regulatory sandbox.
“Unlike other countries with a single financial authority overseeing the market, the U.S. has multiple agencies—including the SEC, CFTC, and banking regulators—each with different perspectives on how digital assets should be classified and regulated. The lack of inter-agency coordination makes implementing a unified sandbox more complex than in jurisdictions with a single regulatory body,” Rademacher told BeInCrypto.
Yet, in recent years, important SEC and CFTC actors have expressed interest in adopting a more favorable regulatory approach to innovation.
“Even though I tend to be more of a beach than a sandbox type of regulator, sandboxes have proven effective in facilitating innovation in highly regulated sectors. Experience in the UK and elsewhere has shown that sandboxes can help innovators try out their innovations under real-world conditions. A sandbox can provide a viable path for smaller, disruptive firms to enter highly regulated markets to compete with larger incumbent firms,” Peirce said in a statement last May.
However, the full scope of national regulations far exceeds the authority of these two entities.
Congressional and Constitutional Hurdles
Any legislative measure to develop a federal regulatory framework for sandboxes in the United States would have to undergo Congressional approval. Talbert highlighted several potential constitutional dilemmas the promotion of an initiative of this nature may face.
“These dilemmas include issues related to the non-delegation doctrine, which raises concerns about the constitutionality of delegating legislative power; equal protection considerations under the Fifth Amendment’s Due Process Clause; challenges arising from the Supremacy Clause; and implications under the Administrative Procedure Act (APA) and principles of judicial review,” he said.
To address these complexities, Congress must enact clear legal boundaries that ensure a regulatory framework is both predictable and open. Given the current administration’s emphasis on technological innovation, the prospects for creating a sandbox appear positive.
“Given the current composition of Congress, which aligns with the political orientation of the new executive branch, there may be a timely opportunity for regulatory reform. Such reform could facilitate the creation of a cohesive federal regulatory framework and enhance collaboration among federal agencies,” Talbert told BeInCrypto.
However, creating a federal regulatory sandbox is not a one-size-fits-all solution.
Balancing State Autonomy and Federal Regulations
State autonomy is enshrined in the US Constitution. This protection means that, even though a regulatory sandbox may exist at the national level, individual states still have the authority to restrict or prohibit sandboxes within their jurisdictions.
Encouragingly, most US states are already exploring regulatory sandboxes, and the states that have already implemented them represent diverse political viewpoints.
However, other considerations beyond political resistance must also be addressed.
“A federal regulatory sandbox might also face opposition from established financial institutions, including banks, which may perceive potential threats to their existing business models. Furthermore, federal budgetary constraints could impede the government’s capacity to support the development and maintenance of a federal regulatory framework,” Talbert added.
Effective federal regulations will also require a balance between businesses’ concerns and regulators’ responsibilities.
“The two biggest risks are overregulation—imposing excessive restrictions that undermine the sandbox’s purpose—or underregulation, failing to provide meaningful clarity. If the rules are too restrictive, businesses may avoid participation, limiting the sandbox’s effectiveness. If they are too lax, there is a risk of abuse or regulatory arbitrage. A well-executed federal regulatory sandbox should not become a bureaucratic burden but rather a dynamic framework that fosters responsible growth in the digital asset space,” Rademacher told BeInCrypto.
Ultimately, the best approach will require coordination from different governing bodies, industry stakeholders, and bipartisan collaboration.
Fostering Collaboration for a Successful Sandbox
Due to recent strained communication between tech and federal agencies, Rademacher believes fostering a cooperative atmosphere is essential for creating a functional federal sandbox.
“The approach must be collaborative rather than adversarial. Agencies should view the sandbox as an opportunity to refine regulations in real time, working alongside industry participants to develop policies that foster responsible innovation. Involvement from banking regulators and the Treasury Department could also be valuable in ensuring that digital assets are integrated into the broader financial system in a responsible manner,” he said.
Achieving this requires a bipartisan approach to harmonizing regulatory goals and setting clear boundaries. Industry collaboration with lawmakers and regulators is vital to showing how a sandbox can promote responsible innovation while safeguarding consumers.
“Its success will ultimately depend on whether it serves as a bridge between innovation and regulation, rather than an additional layer of complexity,” Rademacher concluded.
Solana (SOL) has recorded a massive surge in institutional interest in recent months, drawing speculation among traders on what this may mean for the price. As of July 4, Solana price was trading at $150 after gaining by nearly 6% in the last week. These gains have drawn questions about whether SOL may be headed
BREAKING: Fed Chair Jerome Powell’s resignation may be imminent…
Markets: A surprise exit could spike volatility as uncertainty hits Wall Street
Interest Rates:… pic.twitter.com/RmlJMwqhH3
