Federal Reserve Chairman Powell: No Intention to Ban Cryptocurrencies, But Calls for Stricter Regulation

Federal Reserve Chairman Jerome Powell said on Thursday during a two-hour hearing with the House Financial Services Committee that he has "no intention" of banning cryptocurrencies, but believes they need stricter regulation.

Federal Reserve Chairman Powell stated during a two-hour hearing at the House Financial Services Committee on Thursday that he has "no intention" of banning cryptocurrencies, but believes that they should be subject to stricter regulation.

Congressman Ted Budd, a long-time supporter of cryptocurrencies and a member of the Congressional Blockchain Caucus, asked Powell to clarify his remarks from a hearing in July. Powell had previously suggested during the July hearing that the development of a US CBDC could potentially reduce the demand for private cryptocurrencies and stablecoins.

When directly asked by Ted Budd whether he intends to ban or restrict the use of cryptocurrencies, Powell emphatically replied, "No. I have no intention to ban them."

Powell's statement at the Financial Services Committee contradicted many speculations, including those within the crypto community that the US might follow China's lead in banning private cryptocurrencies using a CBDC, a notion that Powell himself refuted (refer to Powell: If you have a digital dollar, you don't need stablecoins or cryptocurrencies).

Regarding stablecoins, Powell compared them to money market funds or bank deposits. He mentioned that they are somewhat "beyond the regulatory perimeter, and so regulation is appropriate."

However, he also stressed that if stablecoins are going to play a significant role in the US payment system, they need to be regulated.

Powell reiterated that even if other countries develop CBDCs, the US dollar's status as the world's reserve currency will not be threatened, and he believes that digital currencies can replace decentralized digital assets.

This article is authorized reposted from Horizon News Network.