At the same time, according to the regulator, a suitable legal framework needs to be created for the instrument.
US Federal Reserve Chairman Jerome Powell does not believe that cryptocurrencies can pose a threat to the stability of US financial markets. This was conveyed in his speech at the conference.
- Jerome Powell paid special attention to stablecoins. According to the US FRS chairman, financial instruments could benefit the market if the authorities find a solution to regulate them. At this time, he believed that there was no such action.
Excerpt from Jerome Powell’s speech on stablecoins:
- Jerome Powell’s positive attitude towards stablecoins is not shared by the experts from the US Senate Banking Committee. They believe that the proliferation of instruments carries risks to the financial system. Concerns The US Senate Banking Committee was joined by Yale University economist Gary Gorton and US Federal Reserve spokesman Jeffrey Zhang. They believe that stablecoins can take America back to the days of “wild banking”. During this period, US financial markets were flooded with unsecured money.
- It is noteworthy that previously the chairman of the American Fed has repeatedly criticized private cryptocurrencies. In particular, the Meta crypto project (Facebook) is under pressure. Jerome Powell mentioned one of the main problems of private cryptocurrencies the possibility of money laundering using the asset.
We will remind you, earlier that the Fed analyzed the pressure of digital assets against the dollar.