Federal Reserve Chair Jerome Powell Urges Stablecoin Regulations
Federal Reserve Chair Jerome Powell recently emphasized the urgent need for Congress to establish regulatory measures for stablecoins during a private meeting with House Democrats and the Financial Services Committee.
Powell’s proactive stance underscores the growing consensus on the necessity of stablecoin regulations, reflecting the Federal Reserve’s commitment to ensuring financial stability and consumer protection in the evolving landscape of digital currencies.
In addition to addressing stablecoins, Powell also highlighted the importance of congressional authorization for any potential adoption of Central Bank Digital Currencies (CBDCs). This assertion aligns with his previous statements emphasizing the significance of legislative support for major financial innovations, echoing a sentiment he expressed during a monetary policy hearing in June 2023.
Recent legislative strides in the realm of digital currency regulation have been marked by the House Financial Services Committee’s approval of two significant bills in July 2023. The Financial Innovation and Technology for the 21st Century Act and the Blockchain Regulatory Certainty Act represent substantial progress towards establishing a structured regulatory environment for crypto firms and blockchain entities.
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The Financial Innovation and Technology for the 21st Century Act lays out a comprehensive framework for crypto firms to register with either the Commodity Futures Trading Commission (CFTC) or the Securities and Exchange Commission (SEC), aiming to foster innovation while ensuring consumer protection.
Meanwhile, the Blockchain Regulatory Certainty Act seeks to streamline regulations for blockchain entities, providing clear definitions for entities classified as money transmitters. These bipartisan legislative efforts aim to clarify the regulatory landscape surrounding digital currencies, promoting growth and reducing ambiguity within the sector.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
