Federal Reserve Chairman Jerome Powell confirmed throughout a listening to earlier than the House Financial Services Committee that he has no intention to ban or restrict the usage of cryptocurrencies. He additionally commented on the regulation of stablecoins.
Powell Says ‘No Intention to Ban’ Crypto
The chairman of the Board of Governors of the Federal Reserve System, Jerome Powell, talked about cryptocurrency, stablecoins, and central financial institution digital currencies (CBDC) throughout a listening to earlier than the House Financial Services Committee Thursday. The predominant focus of the assembly, nonetheless, was the Federal Reserve’s and Treasury’s responses to the Covid-19 pandemic. Treasury Secretary Janet Yellen spoke for the Treasury Department.
U.S. Congressman Ted Budd from North Carolina mentioned to Powell: “In a July listening to earlier than this committee, you had been requested about CBDCs or the central financial institution digital currencies and their influence on stablecoins and different cryptocurrencies, and also you said, ‘You wouldn’t want stablecoins, you wouldn’t want cryptocurrencies in the event you had a digital U.S. foreign money.’”
Rep. Budd continued:
So Mr. Chairman, as a matter of coverage, is it your intention to ban or restrict the usage of cryptocurrencies like we’re seeing in China.
Powell instantly replied: “No.”
The Fed chairman shortly adopted his reply with an admission that he “had misspoken” earlier when he mentioned, “you wouldn’t want cryptocurrencies.” Powell added, “Take the phrase cryptocurrency out of that sentence.”
Rep. Budd felt that Powell’s reply relating to the banning of cryptocurrencies was not clear sufficient so he requested once more. “But, no intention to ban?” Powell confirmed that there isn’t a intention to ban crypto.
The Fed chair proceeded to speak about stablecoins, stating:
Stablecoins are like cash market funds. They’re like financial institution deposits however they’re to some extent exterior the regulatory parameter and it’s acceptable that they be regulated, similar exercise, similar regulation.
On Friday, the Wall Street Journal reported that the Biden administration is searching for to control stablecoin issuers as banks.
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