The Federal Reserve reported that 10% of US adults used cryptocurrency in 2025, marking the highest adoption rate since 2022 but still below the 12% peak recorded in 2021. The report, published May 19, 2026, reveals that investment dominates crypto usage, with 9% of Americans holding digital assets primarily for financial gain rather than transactional purposes. Only 2% use crypto for payments, and 1% for remittances, indicating a structural shift in how Americans engage with blockchain technology.
Investment Thesis Drives Adoption Recovery
Crypto adoption bottomed in 2023-2024 before rebounding to 10% in 2025, according to the Federal Reserve’s Household Economic Well-Being report. The recovery reflects growing interest in cryptocurrency as a store of value rather than a medium of exchange. Among those using crypto for payments, users cited speed, privacy, and lower cost advantages. The data suggests a clear bifurcation: investment-focused adoption is climbing while payment adoption remains stalled, with only 2% of the population transacting regularly in digital assets.
Unbanked Population Drives Transaction Usage
The 6% of unbanked Americans use crypto for transactions at a 3x higher rate than banked adults, who represent 2% of transaction users. This disparity highlights crypto’s role as financial infrastructure for the excluded rather than mainstream adoption. Among unbanked Americans, less than 10% cite safety concerns or banking distrust as reasons for crypto preference. Instead, 25%+ of payment users emphasize transaction speed and cost efficiency. Meanwhile, Block has enabled 800,000+ US merchants to accept Bitcoin and stablecoin payments, though merchant adoption lags retail consumer interest.
Fed Leadership Shift May Reshape Policy Stance
The report coincides with a leadership transition at the Federal Reserve. Jerome Powell’s term ended Friday, May 2026, replaced by Kevin Warsh, who was voted in by the Senate on Wednesday, May 2026. Warsh has signaled a more favorable stance toward Bitcoin, describing it as a source of “market discipline” and comparing it to gold as an investment for Americans under 40. This represents a marked shift from Powell’s cautious approach to crypto, potentially influencing future Fed policy and regulatory clarity for the sector.
Payment Infrastructure Expansion Faces Adoption Ceiling
Despite Block and startups like Lightspark expanding Bitcoin and Lightning Network payment infrastructure, consumer adoption remains stuck below historical levels. The gap between merchant enablement and actual transaction volume signals that infrastructure investment has outpaced consumer demand for crypto payments. The next critical variable is whether Warsh’s pro-Bitcoin stance translates into regulatory clarity that accelerates payment adoption beyond the current 2% baseline.
