Federal Reserve Chairman Powell Confirmed No Intention to Ban or Limit Use of Cryptocurrencies

By Clark

Federal Reserve Chairman Jerome Powell confirmed throughout a hearing before the House Financial Services Committee that he has no intention to ban or limit the use 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 FRS System, Jerome Powell, talked regarding cryptocurrency, stablecoins, and central bank digital currencies (CBDC) throughout a hearing before the House Financial Services Committee Thursday. The most focus of the meeting, however, was the Federal Reserve’s and Treasury’s responses to the Covid-19 pandemic. Treasury Secretary Janet Yellen spoke for the executive department.

U.S. congresswoman Ted Budd from North Carolina said to Powell: “In a July hearing before this committee, you were asked regarding CBDCs or the Central Bank digital currencies and their impact on stablecoins and different cryptocurrencies, and you declared, ‘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 policy, is it your intention to ban or limit the use of cryptocurrencies like we are  seeing in China.

Powell straight off replied: “No.”

The Fed chairman quickly followed his reply with an admission that he “had misspoken” earlier once he affirmed, “you wouldn’t want cryptocurrencies.” Powell added “Take the word cryptocurrency out of that sentence.”

Rep. Budd felt that Powell’s answer relating to the forbidding of cryptocurrencies wasn’t clear enough thus he asked once more. “But, no intention to ban?” Powell confirmed that there’s no intention to ban crypto.

The Fed chair proceeded to speak regarding stablecoins, stating:

“Stablecoins are like money market funds. They’re like bank deposits however they’re to some extent outside the regulative parameter and it’s appropriate that they be regulated, same activity, same regulation.”

On Friday, the Wall Street Journal rumored that the Biden administration is seeking to manage stablecoin issuers as banks.


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