Fed Chairman Jerome Powell clarified a statement he made in July, stating that they have no intention of banning the use of cryptocurrencies.
Powell spoke about the work of digital central bank money (CBDC) during a session he attended in July. “If there was a digital US currency, you wouldn’t need stablecoins, you wouldn’t need cryptocurrencies.” had used the words.
Responding to Congressman Ted Budd, who asked him to clarify this statement, Powell felt himself “misunderstood” and unlike the Chinese government, the use of cryptocurrencies have no intention to restrict or prohibit stressed.
Powell made these statements yesterday at the House of Representatives Financial Services Committee session, which he attended with Treasury Secretary Janet Yellen.
Speaking specifically about stablecoins, the Fed Chairman said, “similar to money market funds and bank deposits” He said that these assets “are outside the current regulation parameter” and “it would be appropriate to be regulated”.
Answering another question posed by Congressman Warren Davidson about digital assets, Secretary of the Treasury Yellen stated that the U.S. Taxation Office (IRS) has prepared a “detailed regulation” on cryptocurrency tax declarations.