Powell sees stablecoins as a form of money.
- Today, Powell testified before the House Financial Services Committee.
- During his testimony, he discussed various topics related to digital assets.
- For the first time in two months, Bitcoin exceeded the $30,000 level today.
According to Jerome Powell, Chair of the U.S. Federal Reserve, cryptocurrencies appear to have some “staying power” as an asset class.
The Federal Reserve should be involved in crypto legislation
He also argued that the central bank should have a role in the regulatory framework for stablecoins being developed.
We view payment stablecoins as a type of currency. The central bank is the ultimate source of credibility in money. We believe it would be appropriate to have a robust federal role.
Powell made these remarks during his testimony before the House Financial Services Committee today.
- Bitcoin and Ether do not meet the criteria of the Howey Test.
- Short sellers may struggle to bet against Tether.
- Roger Bayston says blockchain is targeting large TAMs.
Interestingly, his statement signaled acceptance of crypto assets despite recent lawsuits filed by the SEC against Binance and Coinbase Global Inc.
CBDC is unlikely in the near future
Powell confirmed this morning that the Federal Reserve has held discussions with lawmakers on crypto legislation.
Leaving us [U.S. Federal Reserve] with a weak role and allowing a lot of private money creation at the state level would be a mistake.
In his testimony, he also said that a central bank digital currency or “CBDC” is unlikely in the near future. His comments come shortly after the FOMC chose not to increase rates for the first time since March of 2022.
Also on Wednesday, Bitcoin exceeded the $30,000 level, and technical indicators suggest it could climb to $34,000, according to Glassnode, an on-chain data provider (find out more).
