- Rep. Wiley Nickel asked Powell about the Federal Reserve’s stance on stablecoin regulation.
- Powell said that the Fed is still willing to collaborate with lawmakers for stablecoin regulation.
The latest congressional testimony by Federal Reserve Chair Jerome Powell revealed strong desire to have stablecoin legislation passed before the year closes.
Recently, Fed Chair Jerome Powell voiced his support for stablecoin regulation. Rep. Wiley Nickel asked Powell about the Federal Reserve’s stance on stablecoin regulation. And Powell said that the Fed is still willing to collaborate with lawmakers.
Active Participation
This commitment emphasizes the significance of establishing a regulatory framework for the supply of stablecoin services. In order to strengthen the safety and reliability of financial transactions conducted in the US. Following this, the legislative process will begin, with several legislators and banking regulators actively participating.
For a thorough measure to govern payment stablecoins, Senators Cynthia Lummis and Kirsten Gillibrand introduced the Lummis-Gillibrand Payment Stablecoin Act in April. Aiming to safeguard consumers and encourage innovation without jeopardizing the dollar’s dominance, this bipartisan law seeks to regulate the market.
With an emphasis on payment stablecoin regulation, the new law supersedes the Responsible Financial Innovation Act (RFIA) of 2022. The new law defines a “payment stablecoin” as any cryptocurrency asset that is either pegged to a constant quantity in US dollars or meant to be used as a medium of exchange or payment. Not included in the bill are stablecoins tied to assets other than US dollars.
According to market forecasts, everyone in the financial business, including those associated with the cryptocurrency market, is hoping for a break from Thursday’s CPI statistics. Market participants will be keeping a careful eye on the Federal Reserve’s next policy rate plans in light of crucial inflation indicators.
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