Investors and cryptocurrency enthusiasts just took a huge sigh of relief. Jerome Powell- Chairman of the Federal Reserve- has confirmed that he „has no intention“ to prohibit cryptocurrency across the US.
Powell’s Position on Crypto
The chairman reiterated that he was correct and clarified the position when he testified before congress. House Rep. Ted Budd asked Powell to provide an explanation of one of his previous remarks on the subject. Jerome Powell. Signals The signals that Quantum Ai platforms utilize to generate revenue for all its customers are a notable element of this platform. The month of July saw Powell added his name to a long list of experts who suggested that the use of cryptocurrency should be halted in an upcoming congressional hearing. In a speech on the possibility of the creation of a CBDC the spokesman claimed that it would eliminate the need for cryptocurrency.
He also called this result „one of the stronger arguments in its favor.“ So, he suggested that it would be a great thing. But it was when Bundy sought clarification from the chairman whether that was the intention, Powell admitted he „misspoke.“ There is no… there is no plan to prohibit them. However, stablecoins are similar to money market funds, similar to bank deposits.
They’re not within the regulatory boundaries.
It’s proper that they operate within the framework of the rules. Similar activities, same regulations. While not the expected outcome, some investors as well as thinkers have been worried about a US restriction on cryptocurrency. This would be similar to China’s recent prohibition on all transactions involving cryptocurrency within the country. This would also have been a resemblance to what happened when they confiscated the United States confiscated its citizen’s gold in 1933. Powell’s words from today have calmed the fears of Bitcoin users. Michael Saylor, who often uses the term Bitcoin being „digital gold,“ tweeted Powell’s tweet today, and it has racked up more than 20 thousand followers.
What Powell Worries About
Powell doesn’t seem to believe that the nation is in danger enough from cryptocurrency to warrant banning it. He went as in the direction of calling Bitcoin an „failure“ as a currency with a focus on volatile prices and the absence of any use-case. He says the most important issue is the stablecoins that see daily use as a means for exchange.
For instance Tether (USDT) has been deemed the biggest stablecoin in terms of market capitalization and has more than twice the Bitcoin daily transactions. SEC Chair Gary Gensler also shows skepticism of stablecoins. They are a popular method for transactions outside the US regulation framework. They even called them „poker chips at the casino gaming tables“ in the last week.