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US Lawmakers Urge Fed Chair Jerome Powell to Help Crypto Innovation

10/03/2021
US Lawmakers Ask Fed Chair Jerome Powell to Support Crypto Innovation

A number of U.S. lawmakers have referred to as on Federal Reserve Chairman Jerome Powell to help cryptocurrency innovation. “The Federal Reserve should work to help home innovation … Our authorities ought to by no means be within the enterprise of thwarting innovation.”

Members of Congress Urge Fed Chair Powell to Help Crypto Innovation

A number of U.S. Congress members have despatched a letter to Fed Chair Jerome Powell asking him a number of questions relating to 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 People to turn into on a regular basis traders needs to be our highest precedence – decentralized digital belongings present that chance. The Federal Reserve should work to help 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 assertion that the most important supporting argument for a Fed-issued digital foreign money is that it might remove the necessity for personal sector innovation.”

The letter factors out that cryptocurrencies are topic to “overlapping regulation from a number of regulators,” together with the Fed, the Monetary Crimes Enforcement Community (FinCEN), the Securities Change Fee (SEC), and the Commodities Futures Buying and selling Fee (CFTC).

Noting that crypto adoption has been “hobbled by an absence of regulator readability,” Powell was requested what steps the Fed is taking “to coordinate with different federal regulators on the event of coverage steerage for digital belongings akin to cryptocurrencies, and different vital associated coverage points akin to custody and accounting, to make sure the USA stays a frontrunner in monetary innovation.”

As well as, the Fed chair was requested what steps the Fed is taking “by itself or in coordination with regional Federal Reserve Banks to supply regulatory readability to banks that want to supply cryptocurrency or different digital asset custody to their prospects.”

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 foreign money (CBDC) and whether or not he believes a CBDC would make cryptocurrencies and their purposes — “from decentralized identification to decentralized file storage” — out of date.

The lawmakers’ letter to Powell concludes with a request:

We recognize your immediate response, no later than October 15, 2021, to the questions detailed on this letter.

Powell testified earlier than the Home Monetary Companies Committee in July, stating that “you wouldn’t want stablecoins, you wouldn’t want cryptocurrencies in case you had a digital U.S. foreign money.” He not too long ago admitted that he misspoke and the phrase cryptocurrencies needs to be omitted from the assertion. He instructed Rep. Budd final week that he has no intention to ban or restrict using cryptocurrencies.

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