- According to media reports, the head of the Federal Reserve addressed the issue of stablecoins during a meeting at the House of Representatives.
- He expressed support for the development of a regulatory framework and endorsed the bipartisan collaboration on the bill.
During a closed-door meeting with the US House Financial Services Committee on February 13, 2024, Federal Reserve Chairman Jerome Powell expressed his support for establishing a regulatory framework for stablecoins, as reported by Politico citing anonymous sources.
The discussion covered various topics, including the Fed’s policy and digital assets.
Specifically, Powell endorsed the idea of developing regulations for stablecoins and applauded the joint efforts of Democrats and Republicans on the committee.
The relevant bill was introduced in April 2023 but failed to move past the initial hearings due to opposition from Democrats who deemed it “morally outdated.”
Despite the support of Treasury Secretary Janet Yellen, the bill never reached Congress. However, news emerged in February 2024 suggesting that a compromise had been reached between the parties.
In addition to stablecoins, Powell also commented on the concept of launching a central bank digital currency (CBDC), stating that the Fed neither supports nor opposes this type of asset but its release requires Congressional action.