Federal Reserve Chairman Jerome Powell confirmed throughout a listening to earlier than the Home Monetary Providers Committee that he has no intention to ban or restrict using 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 Providers Committee Thursday. The primary focus of the assembly, nevertheless, 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 have been requested about CBDCs or the central financial institution digital currencies and their impression on stablecoins and different cryptocurrencies, and also you said, ‘You wouldn’t want stablecoins, you wouldn’t want cryptocurrencies when you had a digital U.S. forex.’”
Rep. Budd continued:
So Mr. Chairman, as a matter of coverage, is it your intention to ban or restrict using 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 stated, “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. “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 exterior the regulatory parameter and it’s acceptable that they be regulated, identical exercise, identical regulation.
On Friday, the Wall Road Journal reported that the Biden administration is searching for to manage stablecoin issuers as banks.
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