Several US lawmakers have called on Federal Reserve Chairman Jerome Powell to support cryptocurrency innovation. “The Federal Reserve must act to support domestic innovation…Our government should never be in the business of thwarting innovation.”
Congressmen Urge Fed Chair Powell to Support Crypto Innovation
Several members of the US Congress sent a letter to Federal Reserve Chairman Jerome Powell asking him several questions regarding the Fed’s efforts to regulate cryptocurrency. The bipartisan speech was signed by Representatives Tom Emmer, Darren Soto, Frank Lucas, Ted Budd, Ro Khanna, Glenn “GT” Thompson and Eric Swalwell.
Representative Emer’s description:
Empowering American individuals to become everyday investors should be our top priority – decentralized digital assets provide this opportunity. The Federal Reserve must act to support domestic innovation…Our government must never be in the business of thwarting innovation.
The congressman explained that his letter “highlights concern about Powell’s statement that the single most supportive argument for the Federal Reserve’s digital currency is that it can eliminate the need for private sector innovation.”
The letter notes that cryptocurrencies are subject to “overlapping regulation by multiple regulators,” including the Federal Reserve, the Financial Crimes Enforcement Network (FinCEN), the Securities Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
Noting that cryptocurrency adoption “has faltered due to a lack of regulatory clarity,” Powell was asked about steps the Federal Reserve is taking “to coordinate with other federal regulators on the development of policy guidance for digital assets such as cryptocurrencies, and other important related policy issues such as custodianship.” and accounting, to ensure the United States remains a leader in financial innovation.”
In addition, the Fed chair was asked about steps the Fed is taking “on its own or in coordination with regional Federal Reserve banks to provide regulatory clarity to banks that wish to offer cryptocurrency or other digital assets to their customers.”
Chairman Powell was questioned further when the Federal Reserve plans to release a discussion paper on the design of a US central bank digital currency (CBDC) and whether he thinks a US central bank digital currency will make cryptocurrency and its applications — “from decentralized identity to decentralized file storage” — Outdated.
The lawmakers’ letter to Powell concludes with a request:
We appreciate your prompt response, no later than October 15, 2021, to the questions detailed in this letter.
Powell testified before the House Financial Services Committee in July, saying, “You don’t need stablecoins, you don’t need crypto if you have a digital American currency.” He recently admitted that he got it wrong and that the word cryptocurrency should be removed from the statement. Rep. Budd told last week that he had no intention of banning or restricting the use of cryptocurrencies.
What do you think about US lawmakers urging Federal Reserve Chairman Powell to support cryptocurrency innovation? Let us know in the comments section below.
photo credits: Shutterstock, Pixabay, Wikicommons
disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the Company nor the author shall be liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.