Fed chair Jerome Powel said that the bank has no plans to prohibit crypto activities like China.
Related: FED head pointed out the need to regulate stablecoins
Congressman Ted Budd raised the question in terms of a hearing of the House Committee on Financial Services, asking if Fed Plans include banning or limiting the use of crypto.Previously, in July, Powell said that the launch of a digital dollar might make stablecoins irrelevant. Powell answered the question by stating that then he was referring to stablecoins and not to all crypto assets.
The central bank's top regulator says stablecoins are like money market funds. They are similar to bank deposits but are outside of regulation scope. Powel finds regulation will be an appropriate solution.
He's been working with Treasury Secretary Janet Yellen to present a draft of stablecoin regulation frameworks, which is planned for the next couple of weeks.
Recently, business magnate Elon Musk expressed his views about crypto regulation during the recently held Code Conference. Musk says the US should do nothing about the crypto industry. According to him, although it’s impossible to destroy crypto, governments can slow down its evolution.