Jerome Powell Addressed Crypto; Asked for a Stablecoin Bill in US

Jerome Powell, the chairperson of the Federal Reserve, demonstrated the need for a stablecoin bill in a meeting with Democrats from the House Financial Services Committee on 12 February. Politico, a media company, confirmed the same.     

What Did Jerome Powell Say About the Stablecoin Bill?

In a meeting to testify about House Financial Services, Hose Budget, monetary policy, and bank regulations, Jerome Powell highlighted the influence of cryptocurrency on financial health and the requirement for stablecoin bills in the US.  

The meeting was hotter than expected and let the Federal Reserve wait until the middle of the year to cut the rates. Numerous issues and areas were discussed in the meeting, but talks on cryptocurrency caught the attention of the world. 

He talked about stablecoin and showed support for the digital currency.

“We need a framework for stablecoins and I am glad that we are very close to it,” said Powell to the members. 

He also raised the topic during a hearing on monetary policy back in June 2023, talked about payment stablecoins, and highlighted the requirement for central bank credibility in the financial system.

The House Financial Services Committee granted two bills related to Financial Innovation and Technology and the Blockchain Regulatory Certainty Act. Keeping the Scenario in mind,  the committee can focus on the current points highlighted by Powell.   

Powell has also influenced the crypto market in the past with his comments. He commented on Bitcoin in June 2023, stating, “Crypto seems to have staying power as an asset class and we see stablecoin in a form of money”. 

The statement undoubtedly skyrocketed Bitcoin by 8% and hit $30,000 for the first time in June. Likewise, Ethereum showcased a hike of 5% and reached $1,877, the highest since June 2022.

Apart from the bills for stablecoins in the US, Powell also emphasized other topics like Central Bank Digital Currency (CBDC), New York Community Bancorp. (NYCB), and Basel capital rules.   

Other Topics Covered By the Federal Reserve Chair 

Jerome Powell’s engagement and interaction with the lawmakers focus on the Federal Reserve’s interest in developing CBDC, Stablecoin, and related regulations. 

 For CBDC regulations, Powell stated the need for Congress for authorization. Clarifying the statement, Powell said that we are yet to recommend CBDC to Congress but need their approval. 

 Additionally, he also emphasized the Basel capital rules and legislations. According to Powell, regulators must update the capital rules to ensure a hike in capital requirements for large banks.  

Highlighting NYCB, Powell said that the continued struggle of NYBC with the real estate losses made people move on.  

All these discussions and talks are supposed to have a positive influence on the crypto as well as the financial market.     

Steefan George is a crypto and blockchain enthusiast, with a remarkable grasp on market and technology. Having a graduate degree in computer science and an MBA in BFSI, he is an excellent technology writer at The Coin Republic. He is passionate about getting a billion of the human population onto Web3. His principle is to write like “explaining to a 6-year old”, so that a layman can learn the potential of, and get benefitted from this revolutionary technology.