The Fed Chairman has time and again popped up in the crypto industry. While the United States, Federal Reserve hasn’t expressed extreme hostility towards the industry, like the Securities and Exchange Commission [SEC] or other regulatory entities. rumors pertaining to a ban on crypto were surfacing. The Fed Chairman Jerome Powell clarified that the occurrence of such an instance was unlikely.
China’s big crypto crackdown had left an array of governments thinking if they were right on adopting crypto. While the world had just started to recognize crypto as a legit market, China started to oust a number of firms associated with the industry. As fear surrounding the same was sprucing up in the United States, Powell pulverized rumors related to the same and revealed that the government should lay its focus on regulations instead.
Appearing in a recent hearing of the House Committee on Financial Services, Powell addressed an array of things. This list also included the role of crypto in the current world.
Fed’s Powell affirms no ban on crypto
The Fed chairman was posed with a question by Rep. Ted Budd. This question was related to the blanket ban that China had imposed on crypto. Budd asked Powell if he intended to “ban or limit the use of cryptocurrencies.” Powell asserted, “No.” He made it clear that the Fed had no intentions of banning or even limiting the use of crypto in the country.
However, he had previously noted that the creation and emergence of the digital dollar aka the US’s potential CBDC could dent the importance of stablecoins.
Responding to Budd’s question, Powell said,
“But stablecoins are like money market funds, they’re like bank deposits, but they’re to some extent outside of the regulatory perimeter. And it’s appropriate that they be regulated. Same activity, same regulation.
While countries have slowly started to open up doors for crypto, China shutting its door could deprive the country and its citizens of what the crypto-verse has to offer. Steering away from a ban, the US clearly seemed to be focusing on regulating the crypto market.