Federal Reserve Chairman Jerome Powell recently emphasized the urgent need to establish a legislative framework for stablecoin regulation. A closed-door meeting with House Democrats was held on Tuesday at the House Financial Services Committee, which will drive the new step in regulating cryptocurrencies in the United States.
Powell’s remarks strongly express the need for stablecoin regulation. Stablecoins are digital currencies linked to stable assets such as the US dollar, and regulation will ensure their safe and reliable operation within the financial ecosystem.
Political and economic media outlet Politico quoted a participant’s viewpoint, stating that Powell is optimistic about reaching a consensus on stablecoin regulation. It is alleged that he stated, “We are close to reaching an agreement on stablecoin legislation.”
During the meeting, Powell also discussed his stance on Central Bank Digital Currencies (CBDCs). Powell explicitly stated that the Federal Reserve System maintains a neutral position on the idea of a US digital dollar, neither supporting nor opposing it. However, he made it clear that congressional approval is necessary before taking any steps to implement it. “If we want to have a CBDC, Congress needs to authorize it.”
The dialogue between Powell and lawmakers in this meeting is not just a routine exchange, but a clear call for legislative action in the rapidly evolving digital financial world. With the complexity of dealing with digital currencies, Powell’s provided direction outlines a cautious yet forward-looking approach aimed at embracing the potential of digital assets within a solid legal framework, while ensuring their stability and security.