US Lawmakers Urge Fed Chair Jerome Powell to Support Crypto Innovation


Quite a few U.S. lawmakers have identified as on Federal Reserve Chairman Jerome Powell to guidance cryptocurrency innovation. “The Federal Reserve should operate to help domestic innovation … Our federal government should in no way be in the business of thwarting innovation.”

Members of Congress Urge Fed Chair Powell to Support Crypto Innovation

Quite a few U.S. Congress members have sent a letter to Fed Chair Jerome Powell asking him a number of queries pertaining 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 individual Americans to develop into daily investors should be our best precedence – decentralized electronic belongings give that prospect. The Federal Reserve should perform to help domestic innovation … Our govt must by no means be in the business enterprise of thwarting innovation.

The congressman spelled out that his letter “highlights problem with Powell’s statement that the largest supporting argument for a Fed-issued digital currency is that it could eliminate the want for private sector innovation.”

The letter details out that cryptocurrencies are subject matter to “overlapping regulation from several regulators,” like the Fed, the Money Crimes Enforcement Network (FinCEN), the Securities Trade Fee (SEC), and the Commodities Futures Trading Commission (CFTC).

Noting that crypto adoption has been “hobbled by a absence of regulator clarity,” Powell was asked what methods the Fed is getting “to coordinate with other federal regulators on the enhancement of coverage advice for digital belongings these types of as cryptocurrencies, and other important similar policy concerns these as custody and accounting, to guarantee the United States stays a chief in monetary innovation.”

In addition, the Fed chair was asked what ways the Fed is having “on its have or in coordination with regional Federal Reserve Banking institutions to supply regulatory clarity to banking institutions that desire to present cryptocurrency or other digital asset custody to their clients.”

Chairman Powell was further questioned when the Fed plans to launch the dialogue paper on the style of a U.S. central lender digital currency (CBDC) and whether or not he believes a CBDC would make cryptocurrencies and their purposes — “from decentralized id to decentralized file storage” — out of date.

The lawmakers’ letter to Powell concludes with a request:

We appreciate your prompt reaction, no later than October 15, 2021, to the issues detailed in this letter.

Powell testified ahead of the Home Economic Services Committee in July, stating that “you wouldn’t will need stablecoins, you wouldn’t need to have cryptocurrencies if you experienced a digital U.S. currency.” He not long ago admitted that he misspoke and the term cryptocurrencies ought to be omitted from the statement. He instructed Rep. Budd final week that he has no intention to ban or restrict the use of cryptocurrencies.

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