Jerome Powell: the Fed has no intention of banning cryptocurrencies

October 11, 2021

Jerome Powell the Fed has no intention of banning cryptocurrencies

The Federal Reserve (Fed) has no plans to ban cryptocurrencies, but some digital assets need to be included in the legal framework. The agency's head Jerome Powell said this during a speech to the Financial Services Committee of the US House of Representatives.

Congressman Ted Budd asked Powell whether the Fed would follow the lead of the People's Bank of China (PBOC) and impose a "ban or restriction" on the use of cryptocurrencies in the US. The head of the Federal Reserve replied in the negative, but stressed the need to regulate Stablecoins.

"Stablecoins are like money market funds, like bank deposits, but to some extent outside the regulatory perimeter. It is quite appropriate to include them in the legal framework. Same activity, same regulation," he said.

Earlier, the NBK had called cryptocurrencies and staplecoins a threat to the traditional financial system and ruled that the activities of platforms that exchange digital assets among themselves or for fiat are illegal.

On September 28, seven members of Congress sent a letter to Powell, which includes four questions regarding the Fed's attitude towards holding cryptocurrencies at federal banks, as well as the agency's role in shaping international standards for CBDC.

As a reminder, Powell said in July that the emergence of the digital dollar would hit bitcoin's popularity.

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About the author

Hi there, my name is Zalman Weinberg. I'm enthusiast with over 7 years of experience in cryptocurrencies and blockchain. Professional Trader providing Blockchain solutions to Startups and Enterprises. Expert in all cryptocurrency exchange APIs (BitMEX, Bittrex, Binance, Bitfinex, Kraken, Poloniex, Gdax etc.). I have also worked with multiple Forex broker APIs.

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