Federal Reserve Board of Governors (FRB) Chairman Jerome Powell said he did not intend to ban cryptocurrencies at the US House of Representatives Financial Services Commission on Wednesday. Although he clarified that stablecoins will not be prohibited, it does need some regulatory oversight.
Powell said:
“Stablecoins are like money market funds, are like bank deposits, but they’re to some extent outside the regulatory perimeter and it’s appropriate that they be regulated. Same activity, same regulation.”
In addition to Chairman Powell, US Treasury Secretary Janet Yellen also attended the committee to answer questions about the US Treasury and the Fed’s response to the spread of the pandemic.
Powell’s remarks came after Ted Budd (R-N.C), a well-known crypto advocate, quoted Powell’s July hearing that the development of the Central Bank Digital Currency (CBDC) would reduce the need for private crypto assets and stablecoin.
Budd further asked if the FED has any intention to ban cryptocurrencies to which Powell clarified that FED currently has no plans to ban them.
Two days ago, Chair Powell had just asked Congress for consultation and legislative support for the development of the digital dollar. Some speculated that the US CBDC development could lead to a total ban on crypto-assets like China has done. However, Powell’s remarks have denied that possibility.
