Chair of the Federal Reserve: Discussions on stablecoin regulations have concluded

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Jerome Powell, Chairman of the U.S. Federal Reserve (Fed), declared that all types of cryptocurrencies will require approval from Congress before the Federal Reserve engages in management.

During a closed-door meeting on February 13th with Democratic representatives from the House Financial Services Committee, Powell expressed satisfaction that discussions on stablecoin regulations were reported to have concluded, according to information cited from an attendee by Politico.

Jerome Powell

Furthermore, Powell emphasized the role of the Federal Reserve in managing stablecoins, stating that all types of cryptocurrencies must be approved by Congress before entering into management.

He stated:

“If we’re considering a Central Bank Digital Currency (CBDC), Congress needs to agree. We can’t decide on our own, but we also haven’t proposed a CBDC to Congress yet.”

In June 2023, the Fed Chairman declared that classifying stablecoins as “currency” and expressed a desire to regulate the sector, while emphasizing the necessity of enacting laws for stablecoins to maintain the role of the US dollar.

The latest statement from Chairman Jerome Powell indicates that the Fed still supports the use of stablecoins. However, he also noted that the cryptocurrency industry is currently in a “mess,” but also advised against overly strict regulation to avoid slowing down the progress.