REGULATION

"Pass the Stablecoin Legislation Quickly!" Urges Federal Reserve Chair Powell to Urgently Regulate Stablecoins, Calls on Congress to Speed Up

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"Pass the Stablecoin Legislation Quickly!" Urges Federal Reserve Chair Powell to Urgently Regulate Stablecoins, Calls on Congress to Speed Up

The Chairman of the Federal Reserve, Jerome Powell, recently emphasized the urgent need to establish a legislative framework for regulating stablecoins. A closed-door meeting with Democratic lawmakers took place on Tuesday at the House Financial Services Committee, marking a new step in cryptocurrency regulation in the United States.

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Powell Calls for Stablecoin Legislation

Powell's remarks strongly emphasize the need for regulation of stablecoins, which are digital currencies pegged to stable assets such as the US dollar. Regulation will ensure their safe and reliable operation within the financial ecosystem.

Political and economic media outlet Politico quoted a participant as saying that Powell is optimistic about reaching consensus on stablecoin regulation. He reportedly stated, "We are close to an agreement on stablecoin legislation."

Possibility of a US CBDC?

During the meeting, Powell also discussed his stance on a Central Bank Digital Currency (CBDC) for the US.

Powell made it clear that the Federal Reserve is neutral on the idea of a digital US dollar, neither supporting nor opposing it.

However, he emphasized that congressional approval would be necessary before any steps towards implementation are taken. "If we are going to have a CBDC, Congress would need to authorize it," he stated.

The dialogue between Powell and lawmakers is not just a routine exchange but a clear call to legislative action in the rapidly evolving digital financial world.

As the US grapples with the complexities of digital currencies, Powell's guidance 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.