Federal Reserve Chairman Powell Says No Intention to Ban or Limit Use of Cryptocurrencies – Regulation Bitcoin News
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 principal 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 stated to Powell: “In a July hearing before this committee, you were asked about CBDCs or the central bank digital currencies and their impact on stablecoins and other cryptocurrencies, and you stated, ‘You wouldn’t need stablecoins, you wouldn’t need cryptocurrencies if you had a digital U.S. currency.’”
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 stated, “you wouldn’t need cryptocurrencies.” Powell added, “Take the word 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 outdoors the regulatory parameter and it’s applicable that they be regulated, identical exercise, identical regulation.
On Friday, the Wall Street Journal reported that the Biden administration is looking for to manage stablecoin issuers as banks.
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