Several U.S. lawmakers have called on Federal Reserve Chairman Jerome Powell to support cryptocurrency innovation. “The Federal Reserve must work to support domestic innovation … Our government must never be in the business of thwarting innovation.”
Members of Congress urge Fed Chair Powell to support crypto innovation
Several members of the U.S. Congress have sent letters to Fed Chair Jerome Powell asking him a number of questions about the Fed’s efforts to control cryptocurrencies. Reps has signed a bilateral letter.
Representative Emma described:
Empowering individual Americans to everyday investors should be our top priority – decentralized digital resources provide that opportunity. The Federal Reserve must work to support internal innovation … Our government must never do business to thwart innovation.
The congressman explained that his letter “raised concerns with Powell’s statement that the biggest supporting argument for a Fed-issued digital currency is that it could eliminate the need for private sector innovation.”
The letter noted that cryptocurrencies are subject to “overlapping regulation from multiple regulators”, including the Fed, the Financial Crime Enforcement Network (FinCEN), the Securities Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC).
Citing crypto adoption as “hampered by lack of regulatory transparency”, Powell was asked what steps the Fed is taking to coordinate with other federal regulators in developing digital asset policy guidelines such as cryptocurrency and to ensure other critical policy protection and accounting. That the United States is at the forefront of financial innovation. “
In addition, the Fed Chair was asked what steps the Fed is taking to provide regulatory transparency to banks wishing to protect their customers’ cryptocurrencies or other digital assets by coordinating with their own or regional Federal Reserve banks.
Chairman Powell was further questioned when the Fed planned to publish a paper discussing the design of a US central bank’s digital currency (CBDC) and he believed that the CBDC would create cryptocurrencies and their applications – “decentralized identity to decentralized file storage” – obsolete.
The lawmakers’ letter to Powell ends with a request:
We appreciate your prompt response after October 15, 2021 for detailed questions in this letter.
Powell testified before the House Financial Services Committee in July that “you will not need a stable currency, you will not need a cryptocurrency if you have a digital US currency.” He recently admitted that he was wrong and that the term cryptocurrency should be dropped from the statement. He told Rep. Bud last week that he had no intention of banning or restricting the use of cryptocurrencies.
What do U.S. lawmakers think of Fed Chair Powell’s call for support for crypto innovation? Let us know in the comments section below.
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