Several U.S. lawmakers have referred to as on Federal Reserve Chairman Jerome Powell to assist cryptocurrency innovation. “The Federal Reserve must work to support domestic innovation … Our government should never be in the business of thwarting innovation.”
Members of Congress Urge Fed Chair Powell to Support Crypto Innovation
Several U.S. Congress members have despatched a letter to Fed Chair Jerome Powell asking him a number of questions concerning the Fed’s effort on cryptocurrency regulation. The bipartisan letter is signed by Reps. Tom Emmer, Darren Soto, Frank Lucas, Ted Budd, Ro Khanna, Glenn “GT” Thompson, and Eric Swalwell.
Rep. Emmer described:
Empowering particular person Americans to turn out to be on a regular basis buyers must be our highest precedence – decentralized digital belongings present that chance. The Federal Reserve should work to assist home innovation … Our authorities ought to by no means be within the enterprise of thwarting innovation.
The congressman defined that his letter “highlights concern 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 factors out that cryptocurrencies are topic to “overlapping regulation from multiple regulators,” together with the Fed, the Financial Crimes Enforcement Network (FinCEN), the Securities Exchange Commission (SEC), and the Commodities Futures Trading Commission (CFTC).
Noting that crypto adoption has been “hobbled by a lack of regulator clarity,” Powell was requested what steps the Fed is taking “to coordinate with other federal regulators on the development of policy guidance for digital assets such as cryptocurrencies, and other critical related policy issues such as custody and accounting, to ensure the United States remains a leader in financial innovation.”
In addition, the Fed chair was requested what steps the Fed is taking “on its own or in coordination with regional Federal Reserve Banks to provide regulatory clarity to banks that wish to offer cryptocurrency or other digital asset custody to their customers.”
Chairman Powell was additional questioned when the Fed plans to launch the dialogue paper on the design of a U.S. central financial institution digital forex (CBDC) and whether or not he believes a CBDC would make cryptocurrencies and their functions — “from decentralized identity to decentralized file storage” — out of date.
The lawmakers’ letter to Powell concludes with a request:
We respect your immediate response, no later than October 15, 2021, to the questions detailed on this letter.
Powell testified earlier than the House Financial Services Committee in July, stating that “you wouldn’t need stablecoins, you wouldn’t need cryptocurrencies if you had a digital U.S. currency.” He lately admitted that he misspoke and the phrase cryptocurrencies must be omitted from the assertion. He advised Rep. Budd final week that he has no intention to ban or restrict using cryptocurrencies.
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