Federal Reserve Chairman Powell Urgently Calls for Congress to Expedite Stablecoin Regulation
Federal Reserve (FED) Chairman Jerome Powell recently emphasized the urgent need to establish a legislative framework for stablecoin regulation. A closed-door meeting with Democratic lawmakers in the House Financial Services Committee on Tuesday will drive a new step in regulating cryptocurrencies in the United States.
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Powell Calls for Stablecoin Legislation
Possibility of a U.S. CBDC?
Powell’s Remarks Strongly Express the Need for Stablecoin Regulation. Stablecoins are digital currencies pegged to stable assets like the U.S. dollar, and regulation will ensure their safe and reliable operation within the financial ecosystem.
Political and economic media outlet Politico quoted a participant’s perspective, stating that Powell is optimistic about reaching a consensus on stablecoin regulation. It is said that he stated, “We are close to reaching an agreement on stablecoin legislation.”
During the meeting, Powell also discussed his stance on central bank digital currencies (CBDCs).
Powell explicitly stated that the Federal Reserve System remains neutral towards the idea of a digital U.S. dollar, neither supporting nor opposing it.
However, he made it clear that congressional approval is necessary before taking any steps towards its implementation. “If we are to have a CBDC, Congress needs to authorize it.”
The conversation between Powell and lawmakers is not just a routine exchange, but a clear call for legislative action in the rapidly evolving digital financial world.
With the complexity of dealing with digital currencies in the United States, Powell’s provided direction outlines a cautious yet forward-looking approach aimed at embracing the potential of digital assets within a solid legal framework, while ensuring their stability and security.
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Further Reading
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