Federal Reserve Chairman Jerome Powell recently spoke to House Democrats about the importance of establishing a regulatory framework for stablecoins. In a closed-door meeting with the House Financial Services Committee, Powell expressed his support for this initiative, indicating that progress is being made towards its implementation.

Powell’s engagement with lawmakers highlights the Federal Reserve’s commitment to ensuring comprehensive oversight in the development of regulations governing stablecoins and Central Bank Digital Currencies (CBDCs). He emphasized the need for Congress to authorize the creation of a CBDC, underscoring the importance of clear legislative guidance in this evolving financial landscape.

“If we’re going to have a CBDC, Congress needs to authorize it,” Powell stated during the meeting, as reported by Politico.

This discussion builds on previous conversations about stablecoins that took place during a hearing on monetary policy in June 2023. Powell reiterated the Federal Reserve’s position on payment stablecoins, emphasizing the crucial role of central bank credibility in shaping monetary systems.

In a significant development, the House Financial Services Committee approved two bills in July 2023 that have implications for the cryptocurrency industry. The Financial Innovation and Technology for the 21st Century Act introduced guidelines for crypto firms’ registration with regulatory bodies such as the CFTC or SEC. It also outlined a certification process for decentralized projects, aiming to enhance transparency and accountability in the sector.

Additionally, the bipartisan Blockchain Regulatory Certainty Act sought to streamline regulations for blockchain entities, clarifying the classification of certain entities as money transmitters. These legislative efforts reflect ongoing discussions within the government about the need for a structured regulatory framework to govern digital assets and emerging technologies.

For more updates on the latest developments in the world of cryptocurrencies and finance, explore more news on Global Crypto News.

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