The chairman of the US Federal Reserve, Powell, does not intend to ban or restrict the use of cryptocurrencies-regulation
The chairman of the US Federal Reserve, Powell, does not intend to ban or restrict the use of cryptocurrencies-regulation
The chairman of the Federal Reserve, Jerome Powell, confirmed during a hearing in front of the Financial Service Committee of the House of Representatives that he did not intend to ban or restrict the use of cryptocurrencies. He also commented on the regulation of stablecoins.
Powell says "no intention to prohibit crypto"
The chairman of the Governor Council of the Federal Reserve System, Jerome Powell, spoke about cryptocurrency, stable coins and digital central bank currencies (CBDC) during a hearing before the House of Representatives' financial services committee. However, the focus of the meeting was on the reactions of the Federal Reserve and the Ministry of Finance on Covid-19 pandemic. Finance Minister Janet Yellen spoke for the Ministry of Finance.
The US Congressman Ted Budd from North Carolina said to Powell: "In a hearing in July before this committee, they were asked for CBDCs or the digital currencies of the central bank and their effects on stable coins and other cryptocurrencies, and they you need no stable coins, you don't need any Cryptocurrencies if you had a digital US currency. ’“
rep. Budd continued:
Mr. Chairman, so it is basically your intention to ban or limit the use of cryptocurrencies, as we see in China.
powell replied immediately: "No."
The Fed chairman quickly followed his answer with the admission that he had previously "wrongly" spoken out when he said: "You would not need cryptocurrencies". Powell added: "Take the word cryptocurrency from this sentence."
rep. Budd was of the opinion that Powell's answer to ban cryptocurrencies was not clear enough, so he asked again. "But no intention to prohibit?" Powell confirmed that there is no intention to ban crypto.
The Fed chairman continued to spoke about stable coins and explained:
Stable coins are like money market funds. They are like bank deposits, but they are up to a certain degree outside the regulatory parameters and it is reasonable that they are regulated, the same activity, the same regulation.
On Friday, the Wall Street Journal reported that the bidges endeavor to regulate stable coin emitters as banks.
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