In a House Financial Services Committee meeting on Thursday, Federal Reverse Chair Jerome Powell said he has no intentions to ban Bitcoin or other cryptocurrencies. He mentioned that stablecoins need larger regulatory oversight.
The meeting lasted for two hours. It gave a medium to representatives to question Powell and Treasury Secretary Janet Yellen regarding Fed’s and Treasury Department’s pandemic response. It also featured various crypto-related questions.
In July, Powel made some statements that U.S. central bank digital currency (CBDC) has the potential to undercut the need for private crypto. To clarify these statements, a prominent proponent of crypto and member of the Congressional Blockchain Caucus, Rep. Ted Budd (R-N.C.), asked Powell to clarify these statements.
Budd asked if he wishes to limit or ban the use of cryptocurrencies. To which Powell replied, “I have no intention to ban them.”
Representatives were expecting that the development of U.S CBDC will have a similar ban on crypto as seen in China. However, Powell clarified that he is not considering a China-style ban on bitcoin or other cryptos.
When asked about stablecoins, Powell presented the following remarks: “Stablecoins are like money market funds [and] like bank deposits but they’re, to some extent, outside the regulatory perimeter and it’s appropriate they be regulated” “Same activity, same regulation.”