Federal Reserve (The Fed) Chairman Jerome Powell confirmed the United States (US) has no plans to block Bitcoin (BTC) and other cryptocurrencies.
However, stablecoins still require stricter legal monitoring.
At the Treasury Department’s Oversight and Federal Reserve’s Pandemic Response hearing held last night, crypto proponents and members of the Congressional Blockchain Caucus, Ted Budd asked Powell:
"Do you want to restrict or limit the use of cryptocurrencies like China does?"
Powell replied the matter was not in his plans and his statement in July was a mistake. Budd then repeated the same question because Powell had previously shown signs of wanting to ban the use of crypto.
Referring to a statement in July, Powell claimed the U.S. does not need stablecoins or cryptocurrencies with the existence of digital dollars in the future.
Powell’s answer to Budd’s question remains the same - no.
Touching on stablecoins, Powell likened the asset to money market funds or bank deposits: “Some of these assets go beyond the legal limits, and it’s good to be legal. Same activities, same legislation. ”
Undoubtedly, the CBDC is under The Fed’s watch but lawmakers have yet to decide whether to continue the development of the digital dollar or not.
For now, the central bank has produced several research reports related to the advantages and potential barriers in launching CBDC.
The impact of this news on the crypto market is not exciting. Still, most crypto assets are starting to show encouraging movements.
At the time of writing, Bitcoin (BTC) is trading at $ 43,961 with an increase of 1.13% in 24 hours.
