Chairman of the U.S. Federal Reserve says payment dollar stablocoins are money. Therefore, the central bank of the country is obliged to control their issuance.
Latest
Jerome Powell: “The U.S. Federal Reserve views payment staplecoins as money
.
Jerome Powell called for an active role for the federal government in regulating the stablecoin industry. Speaking before the House Financial Services Committee, the governor said the central bank must have the final say in approving the amount of stablcoin they issue.. Powell called it a big mistake for lawmakers to place the financial regulator in a statist’s seat while approving the issuance of a significant amount of private money.
“We view payment staplecoins as money and believe it would be appropriate for the Fed to have significant influence at the federal level in what will happen with staplecoins. It would be a deliberate mistake for the regulator to be weak and allow a lot of private money to be created unchecked,” the official said.
Patrick McHenry, chairman of the House Financial Services Committee, responded by saying he expects to vote on the Stablecoin bill as well as the digital asset market structure bill in the first half of July.
Earlier, experts at JPMorgan Bank shared
their speculation that lawmakers might try to separate ether into a separate digital asset category to get it out of the hands of the Securities and Exchange Commission (SEC).