Federal Reserve Chairman Jerome Powell confirmed throughout a listening to earlier than the Home Monetary Companies 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 Home Monetary Companies Committee Thursday. The principle 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 Division.
U.S. Congressman Ted Budd from North Carolina stated 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 acknowledged, ‘You wouldn’t want stablecoins, you wouldn’t want cryptocurrencies in case 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 rapidly adopted his reply with an admission that he “had misspoken” earlier when he stated, “you wouldn’t want cryptocurrencies.” Powell added, “Take the phrase cryptocurrency out of that sentence.”
Rep. Budd felt that Powell’s reply concerning the banning of cryptocurrencies was not clear sufficient so he requested once more. “However, 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 outdoors the regulatory parameter and it’s applicable that they be regulated, similar exercise, similar regulation.
On Friday, the Wall Avenue Journal reported that the Biden administration is in search of to manage stablecoin issuers as banks.
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