A belated reaction to Powell? He spoke yesterday.
The US Federal Reserve does not intend to ban cryptocurrency transactions, Chairman Jerome Powell said during a two-hour hearing held by the House of Representatives Financial Services Committee. This message was received in response to a question from North Carolina Representative Ted Budd (R-NC).
"In terms of policy, do you intend to prohibit or restrict the use of cryptocurrencies, as we see in China?" Budd asked the central bank.
Chairman Powell replied, "No. There is no intention to prohibit them."
However, the official added that cryptocurrencies, in particular stablecoins, need regulation.
"But stablecoins are like money market funds, they are like bank deposits, but to some extent they are outside the regulatory perimeter. It is appropriate that they be regulated. The same activity, the same regulation."
