Fed Data Shows Crypto Adoption Steady Despite Market Shifts

The Federal Reserve's latest Survey of Household Economics and Decisionmaking (SHED) reveals that roughly 10% of US adults used or invested in cryptocurrency in 2025—the highest share since 2021, though still below the 12% peak recorded four years ago. The data, published on May 13, shows a rebound from lower readings in 2023 and 2024, signaling that crypto's integration into American financial life is stabilizing rather than fading.

Adoption Patterns and Unbanked Usage

Among the 10% of users, 9% held crypto as an investment, 2% used it for payments, and 1% used it for remittances. Notably, crypto usage was higher among unbanked Americans: 6% of that group used it for transactions, compared to 2% of those with bank accounts. This suggests that for the roughly 6% of US adults who remain unbanked, crypto offers an alternative financial access point—especially for payments. Over 25% of crypto payment users said the business they transacted with expressed a preference for crypto, citing speed, privacy, and lower costs.

The report's release coincides with a significant leadership transition at the Fed. Jerome Powell's term ended on May 15, and the Senate confirmed Kevin Warsh as his replacement on May 13. Warsh, a former Fed governor (2006–2011), is known for hawkish views on monetary policy, emphasizing fiscal restraint and lower inflation. He has previously stated that Bitcoin could 'provide market discipline' and compared it to gold as an investment for those under 40.

Market and Policy Implications

Warsh's confirmation introduces a potential policy pivot. His skepticism of quantitative easing and preference for tighter monetary conditions could reduce liquidity that has historically buoyed risk assets, including crypto. However, his recognition of Bitcoin's role as a market disciplinarian may temper regulatory hostility. The Fed report's data on crypto adoption provides a baseline for the new chair to consider: while usage remains niche, it is not negligible, particularly among underserved populations.

Original analysis: The 2025 adoption figure is notable because it occurred during a period of mixed market sentiment—Bitcoin prices have been volatile, and regulatory uncertainty persists. Yet, the increase suggests that crypto's utility for payments and transfers is gaining traction independent of speculative cycles. The unbanked demographic, in particular, represents a growth frontier that traditional finance has struggled to serve. If Warsh's Fed prioritizes financial inclusion, crypto could find a policy ally. Conversely, a strict inflation-targeting approach might dampen the speculative demand that drives investment holdings.

Payment infrastructure is expanding. Jack Dorsey's Block has enabled Bitcoin and stablecoin payments for over 800,000 US merchants, while Lightspark continues to develop the Bitcoin Lightning Network for broader use. These efforts align with the Fed's observation that businesses accepting crypto cite speed and lower costs as key advantages.

Sources:

• CoinMarketCap Academy: Fed Report on Americans' Crypto Usage 2025

1. 10% of US adults used crypto in 2025, up from 2023–2024 lows but below 2021's 12%.
2. Unbanked Americans use crypto for payments at three times the rate of banked individuals.
3. Kevin Warsh's confirmation as Fed chair could shift monetary policy toward tighter conditions, impacting crypto markets.
4. Payment infrastructure from Block and Lightspark is broadening crypto's utility for everyday transactions.