New data from the Federal Reserve sheds light on how cryptocurrency fits into American financial life in 2025. The central bank’s annual report on the economic well-being of households shows about one-tenth of U.S. adults either used or invested in crypto last year, marking the highest level in three years but remaining shy of earlier peaks.

According to the Fed’s 2025 household report, roughly 10% of adults engaged with crypto for any reason in 2025, up from the prior two years but below the 12% observed in 2021. The breakdown indicates around 9% used crypto as an investment, about 2% used it for payments, and roughly 1% sent money to family or friends using crypto. The report underscores that adoption is uneven across the population, with notable gaps between banked and unbanked consumers.

The Fed’s analysis also highlights a stronger crypto footprint among the unbanked. About 6% of unbanked adults used crypto in some capacity in 2025, compared with about 2% of banked adults. With more than a quarter of crypto users who paid with digital assets saying the business they transacted with preferred crypto payments, the report hints at a path for merchants to broaden crypto acceptance beyond speculative trading into everyday transactions.

Crypto’s role in payments is reinforced by industry efforts to integrate digital assets into routine commerce. Block, the payments and infrastructure company associated with Jack Dorsey, has supported Bitcoin and stablecoin payments for more than 800,000 U.S.-based merchants. Meanwhile, Lightspark, a Bitcoin Lightning Network startup founded by former PayPal president David Marcus, is actively pursuing broader adoption of Bitcoin payments as a mainstream option for consumers and merchants alike.

In its 2025 findings, the Fed notes that roughly 9% of respondents use crypto as an investment device, about 2% use it for payments, and 1% use it to send money to relatives or friends. The split reflects a spectrum of use cases, from investment-oriented activity to the growing use of crypto as a payment method in everyday life.

The report also highlights a potential route to broader crypto usage among the unbanked. While just 6% of all respondents used crypto for payments, the rate among the unbanked was higher, signaling crypto’s potential to serve as a financial access point for populations outside the traditional banking system. About 6% of Americans were unbanked in 2025, underscoring the size of this segment and the implications for payment rails and financial inclusion.

For those who did use crypto for payments, more than one in four cited merchants’ willingness to accept digital assets as a compelling driver. The perceived advantages often cited include faster settlement, enhanced privacy, and lower transaction costs. By contrast, fewer than 10% of businesses singled out crypto payments as a safer alternative to banks or due to distrust in the traditional banking system.

Key takeaways

Around 10% of U.S. adults used or invested in crypto in 2025, the highest level in three years but below 2021’s peak of 12%.
Crypto usage was notably higher among the unbanked (about 6%) than among banked adults (about 2%), highlighting potential inclusion benefits.
Investment remains the dominant use case (roughly 9%), with payments (2%) and remittance (1%) trailing behind.
Merchant attitudes matter: over 25% of crypto users who paid with digital assets reported that a business preferred crypto for speed, privacy, and cost savings.
Industry push is underway to normalize crypto payments, with Block and Lightspark among the notable efforts expanding on-ramps and off-ramps for everyday usage.
The 2025 data coincides with a leadership transition at the Federal Reserve and a shift in political sentiment toward Bitcoin, with new leadership signaling a more crypto-tolerant stance.

Policy shifts on the horizon as leadership changes begin

Beyond the numbers, the Fed’s policy narrative is likely to influence how markets perceive crypto risk and adoption. The current chair, Jerome Powell, has steered the central bank through a careful, cautious approach to crypto and digital assets. Powell’s term recently concluded, and Kevin Warsh was confirmed by the Senate to lead the Fed in the coming period. Warsh, who previously served as a Fed governor from 2006 to 2011, is widely described as more hawkish on monetary policy and fiscal restraint, with a history of calling for tighter ranges on inflation and a reduced reliance on quantitative easing.

In public remarks and past statements, Warsh has been characterized as crypto-friendly in certain respects. He has suggested that Bitcoin could play a role in market discipline and has likened it, at times, to digital gold for younger investors. If his stance translates into policy, crypto markets could see a shift in regulatory emphasis, potentially balancing concerns about risk with pathways for innovation, adoption, and broader financial participation.

The upcoming policy posture will matter for entrepreneurs and investors alike. A more crypto-inclusive framework could accelerate merchant adoption and further fortify the links between traditional payments and digital assets, while a tighter regulatory environment could temper speculative activity and alter the incentives for building crypto-enabled services.

What this means for users, merchants and builders

For everyday users, the Fed’s 2025 snapshot confirms that cryptocurrency has become a measurable, albeit still niche, channel for finance. The fact that a meaningful share of unbanked Americans is turning to crypto for payments or transfers underscores the potential for digital assets to complement or supplement conventional financial services, particularly in areas where access to banks is limited or fragmented.

For merchants and payment providers, the data points to a practical path forward: crypto can deliver tangible benefits—faster settlement, improved privacy, and lower costs—when properly integrated into point-of-sale environments. The widespread merchant coverage claimed by Block, along with Lightspark’s Lightning Network initiative, illustrates a tangible push toward real-world usage rather than mere speculation.

For developers and investors, the evolving policy landscape is a critical factor. The prospect of a crypto‑friendly yet disciplined Fed could create a more predictable regulatory backdrop, enabling builders to expand payment rails, custody solutions, and user experiences that bridge traditional finance with digital assets. Attention remains on how these dynamics interact with broader macro policy, including inflation management and the prudential oversight of payment networks and stablecoins.

In sum, the 2025 Fed report confirms a nuanced evolution: crypto is no longer a fringe asset class, but its use cases are still concentrated among specific groups and scenarios. The intersection of consumer adoption, merchant push, and regulatory development will shape how quickly digital assets move from a niche interest to a mainstream feature of daily commerce.

Readers should monitor how the incoming Fed leadership channels crypto discourse into policy actions, and how payment rails evolve to accommodate a growing set of crypto-enabled transactions across households and small businesses.