Fed Chairman Calls for Regulatory Oversight of Stablecoins

Service for copy trading. Our Algo automatically opens and closes trades.

The L2T Algo provides highly profitable signals with minimal risk.

24/7 cryptocurrency trading. While you sleep, we trade.

10 minute setup with substantial advantages. The manual is provided with the purchase.

79% Success rate. Our outcomes will excite you.

Up to 70 trades per month. There are more than 5 pairs available.

Monthly subscriptions begin at £58.

L2T Algo

TELEGRAM

RESULTS

In a recent Congressional hearing focused on monetary policy, Fed Chairman Jerome Powell expressed his views on cryptocurrencies and the role of stablecoins in the financial landscape. While Powell acknowledged the resilience of the crypto industry, he emphasized the importance of regulatory oversight, particularly when it comes to stablecoins.

Powell affirmed that stablecoins, unlike other cryptocurrencies, should be considered a “form of money.” He underscored that central banks, as the ultimate source of monetary credibility, should exercise a robust federal role in the industry. The Fed chairman also cautioned against excessive private money creation at the state level, emphasizing the potential risks involved.

Fed Chairman Dismisses Direct CBDC Issuance

Addressing the topic of Central Bank Digital Currency (CBDC), Powell confirmed that the Federal Reserve has no plans to directly issue a CBDC in the United States. He voiced concerns regarding individual accounts at the Federal Reserve, citing privacy considerations. Powell emphasized that if a CBDC were to be introduced in the future, it would likely be intermediated through the existing banking system rather than being issued directly by the central bank.

Powell’s remarks underscore the Federal Reserve’s focus on regulatory measures to ensure the stability of the crypto market. While recognizing the staying power of the industry, he highlighted the significant retracement of its market capitalization since the previous year.

Looking Ahead

As the crypto industry continues to evolve, the regulatory oversight of stablecoins remains a top priority for the Federal Reserve. While the possibility of a CBDC is still being considered, Powell’s statements suggest that the central bank prefers an approach that involves intermediation through the existing banking system.

The chairman’s remarks shed light on the evolving stance of the Federal Reserve regarding cryptocurrencies and stablecoins. It remains to be seen how regulators will navigate the path toward a balanced regulatory framework that ensures financial stability and innovation in the digital asset space.