US Federal Reserve Chairman Jerome Powell hinted that while the government body should consider monitoring the evolution of the crypto space, it did not view cryptocurrencies as a concern for the financial stability of US markets.
Responding to a question on cryptocurrencies posed by Michael Derby of the Wall Street Journal on Tuesday, Powell supported the conclusions of a report by the President’s Task Force on Financial Markets released on November 1. The report proposed that stablecoin issuers should be subject to “appropriate federal supervision” similar to that of banks, legislation that was “urgently needed” to address risks.
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“Stablecoins can certainly be a useful and efficient part of the financial system serving the consumer if properly regulated,” Powell said. “Right now, they are not. They have the potential to scale, especially if they are associated with one of the great technological networks that exist.”
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