As they are confronted by members of the Senate Bank Committee on concern about the “spread” trend that plagued the crypto industry, Federal Reserve President Jerome Powell said he is also concerned about it and already fine -tuning internal supervisory policies in Fed.
“I’m also uneasy about the amount of these reports,” Powell said in routine testimony to the Senate’s bank committee on Tuesday. He offered that “a theory is that the banks are just very risky” about money-crushing rules and aggressive supervision under which they are unwilling to welcome customers who can stretch their observing requirements.
“We are determined to see a new look at it,” said Powell, who added that he had been “hit by the growing number of cases of what seems to be down.”
Republican lawmakers and the new financial watchdogs appointed by President Donald Trump have provided special control to the so -called degradation, as they say, was encouraged by the former administration banking agencies, including bold, Federal Deposit Insurance Corp. and the office of control of the currency.
Powell also thanked Crypto-Advisor Senator Cynthia Lummis for having traveled in a recent hearing of the hearing that Fed has a policy to direct major supervisory investigation against bankers participating in controversial speech or activity. He said the policy is deleted from the internal manual it came from.
While Crypto Oversight was not a central topic at Powell’s consultation on Tuesday, a few of the industry’s big questions were raised, including stableecoins and Central Bank Digital Currencies (CBDCS).
Powell said Fed supports new legislative efforts around stableecoins – tokens designed to maintain a stable value by being linked to assets like the US dollar.
“Stableecoins can have a great future with consumers and businesses,” Powell said. “We can’t know it now, but it’s important for the development of stableecoins – in a safe and healthy way that protects consumers and savors and all – that there is a regulatory framework.”
The chairman of the US Central Bank also gave a clear answer to his intentions of CBDCs – a nebulous threat of a digital dollar that had long affected us cryptophy companies, though no American proposal ever really evolved. When asked whether he would accept to never launch a CBDC, Powell simply replied, “Yes.”
The possibility of matching Chinese and European experiments with CBDCs had already grown more distant in the United States in the election of Trump and the Majority of the Congress, which is high against such an effort.
Powell will speak again during a hearing in the US Representative House on Wednesday. And Crypto was set to be the highlighted topic later Tuesday afternoon during a hearing in House Financial Services Committee.
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