Fed Chair Powell Says He Has ‘No Intention’ Of Banning Crypto

U.S. Federal Reserve Chairman Jerome Powell said he does not intend to ban cryptocurrencies, but said stablecoins need greater regulatory oversight.

Powell made the comments in a two-hour long House Financial Services Committee meeting on Thursday. The meeting, meant to serve as a forum for representatives to ask Treasury Secretary Janet Yellen and Powell about the Treasury Department’s and Federal Reserve’s pandemic response, featured several questions about cryptocurrencies.

Rep. Ted Budd (R-N.C.), a longtime proponent of crypto and a member of the Congressional Blockchain Caucus, asked Powell to clarify statements he had made during a July hearing that the development of a U.S. central bank digital currency (CBDC) could undercut the need for private crypto and stablecoins.

When asked by Budd directly whether or not he intended to “ban or limit the use of cryptocurrencies,” Powell’s response was a resounding “No.”

“[I have] no intention to ban them,” he said.

Powell’s remarks come just two days after he asked Congress for consultation and legislative support to develop the digital dollar. Some in the crypto community have speculated that the establishment of a U.S. CBDC would lead to bans on private crypto, as was recently seen in China, but Powell’s remarks suggest otherwise.

When asked about stablecoins, Powell compared them to money market funds or bank deposits.

“They’re to some extent outside the regulatory perimeter, and it’s appropriate that they be regulated. Same activity, same regulation,” Powell said.

Rep. Warren Davidson (R-Ohio), also a member of the Congressional Blockchain Caucus, remarked on the lack of regulatory clarity surrounding digital assets, and asked Yellen to define digital assets for tax-accounting purposes. Continue reading with coindesk

Comments

India's Foreign Exchange Reserves Will Decrease Further

As the Reserve Bank of India continues to defend the rupee against the stronger dollar, a Reuters poll predicts that by the end of 2022, India's shrinking foreign exchange reserves will have fallen to their lowest point in more than two years. In an effort to halt the rupee's slide to a historic low against the dollar, the RBI has decreased its foreign exchange reserves by roughly $100 billion, to $545 billion from a peak of $642 billion a year ago, and more is on the way. By the end of this year, those reserves are anticipated to fall by another $23 billion to $523 billion, according to the median forecast from a Reuters poll of 16 economists conducted on September 26-27. If achieved, that would be the lowest level in more than two years. From $500 to 540 billion was predicted. This suggests that the RBI would keep depleting its foreign exchange reserves at a rate unseen since the global financial crisis of 2008, when they decreased by around 20%. The US Federal Reserve has al...

$2B In Crypto Stolen From Cross-Chain Bridges This Year: Chainalysis

Cross-chain bridge hacks have accounted for 69% of the total crypto stolen in 2022, amounting to $2 billion in losses, according to a new report. The report comes from blockchain analytics firm Chainalysis on Aug. 2, noting there have been 13 separate token bridge hacks this year — the most recent being the $190 million Nomad Bridge exploit. Q1 2022 was by far the quarter that saw the most amount of crypto stolen since 2021, due mainly to the Ronin Bridge Attack in late March, which saw $624 million in Ether (ETH) and Circle USD (USDC) stolen. Trade With Trustworthy Broker ✅ AssetsFX ✅ Cross-chain bridges, also known as blockchain bridges are designed to transfer cryptocurrencies from one blockchain network to another. Chainalysis explains that while bridge designs vary, users typically deposit their tokens from one chain to the bridge protocol which are then locked into a contract. The user is then issued the equivalent of...

The World Cup in Argentina is happening at the same time as high inflation.

As the Argentina team gets ready for Sunday's World Cup final, Bloomberg reported that annual inflation in the country is expected to hit 99% this month, and economists think it will soon go above 100%. In 1986, when Diego Maradona led the Albiceleste to the title, the average rate of inflation was 116%. Surveys and data from the central bank show that the rate was 176% in 1978, when Argentina won the tournament it had hosted. Lionel Messi will play his last World Cup game against France. He was born a year after Maradona won the title in 1986, and fans see him as the next legend after him. The team's run to the final match, which included avoiding early elimination and winning five straight games, was fueled by their talisman. This has brought joy to a country that is once again going through tough economic times. But this constant part of the country's economy is not a sign that the country will do well in the World Cup. The team lost the final in 1990, when inflation was...

Search This Blog