Fed Chair Powell Claims “No Intention” Of Banning Crypto

Full article by Cheyenne Ligon found here.

Key Points:

• Federal Reserve Chair Jerome Powell said that he does not intend to ban cryptocurrencies in a House Financial Services Committee meeting today.

• The two hour long meeting was mainly meant to act as a forum for House representatives to ask Treasury Secretary Janet Yellen and Powell about the Treasury Department and the Federal Reserve’s pandemic response.

• Several questions regarding cryptocurrencies were asked, including by Rep. Ted Budd (R-N.C.) who asked Powell to clarify statements made in a July hearing regarding the development of a U.S. central bank digital currency (CBDC). When asked if he intended to “ban or limit the use of cryptocurrencies,” Powell simply responded with “No, I have no intention to ban them".”

• These remarks come days after Powell asked Congress for consultation and legislative support to develop a digital dollar.

• In regards to stablecoins, Powell compared them to money market funds, stating that “they are to some extend outside the regulatory perimeter, and it’s appropriate that they be regulated. Same activity, same regulation.”

• Secretary Yellen was also the subject of questioning regarding the subject, where Rep. Warren Davidson (R-Ohio) asked Yellen to define digital assets for tax accounting purposes. Yellen responded that the Internal Revenue Service (IRS) was in the middle of issuing “detailed regulations that will answer that question.”