Fed Chairman Jerome Powell: “No cryptocurrency ban, but regulation necessary”

United States Federal Reserve Chairman Jerome Powell, speaking before the House Committee on Financial Services, said that the authority had no issue to ban cryptocurrencies. Rather, he believes that the crypto market should be regulated in accordance with existing laws.

Although it was never likely that the U.S. government would completely ban cryptocurrencies, the remark will nevertheless bring a sigh of relief from investors. Powell was responding to a comment that he made earlier when he said that cryptocurrencies could be replaced by a central bank digital currency (CBDC).

The Fed Chairman was asked by Rep. Theodore Budd of North Carolina whether he would ban cryptocurrencies or at least limit their use. Powell firmly said no and that he had “no intention to ban them.” Speaking of stablecoins, he said,

“They’re to some extent outside the regulatory perimeter, and it’s appropriate that they be regulated. Same activity, same regulation.”

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