During a meeting with House Democrats, Federal Reserve Chairman Jerome Powell stressed the importance of creating a regulatory framework for stablecoins. Powell expressed his support for this initiative, stating that they are close to finalizing the framework.
Powell’s interaction with lawmakers highlights the Federal Reserve’s commitment to ensuring strong oversight in the development of regulations for stablecoins and Central Bank Digital Currencies (CBDC). He emphasized the need for Congressional authorization if a CBDC is to be established.
This issue was previously discussed during a monetary policy hearing in June 2023, where Powell reiterated the Federal Reserve’s position on payment stablecoins and the importance of maintaining central bank credibility in monetary systems.
In July 2023, the House Financial Services Committee approved two bills aimed at regulating the cryptocurrency industry. The Financial Innovation and Technology for the 21st Century Act established guidelines for crypto firms to register with either the CFTC or SEC, as well as a certification process for decentralized projects. The bipartisan Blockchain Regulatory Certainty Act aimed to simplify regulations for blockchain entities, specifically identifying those that qualify as money transmitters.
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