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Federal Reserve Chairman Calls for Crypto Regulations during Ukraine Conflict
Summary: Federal Reserve Chairman Jerome Powell reiterated his position that there need to be cryptocurrency regulations during testimony before the House Financial Services Committee on Wednesday. “We have this burgeoning industry which has many parts to it, and there isn’t in place the kind of regulatory framework that needs to be there,” he said in response to ...
Federal Reserve Chairman Jerome Powell reiterated his position that there need to be cryptocurrency regulations during testimony before the House Financial Services Committee on Wednesday.
“We have this burgeoning industry which has many parts to it, and there isn’t in place the kind of regulatory framework that needs to be there,” he said in response to questions about how Russia may be using crypto to circumvent sanctions.
Not only are there rumors Russia will try to circumvent sanctions through crypto, but Ukraine has also benefited from the digital currency. According to a report, Ukraine has received more than $30 million in cryptocurrency donations to help fund its efforts.
While Russia is surely the focus at the moment, this is a common motif that Powell has mentioned before.
In July 2021, Powell told Congress that stablecoins, a type of crypto that relies on a more stable asset as a basis for its value, should be regulated “in comparable ways” to bank deposits and money market mutual funds.
Powell said, if stablecoins are going to be a significant part of the payment universe “we need an appropriate regulatory framework which frankly we don’t have.”
In addition to Powell, chairman of the Securities and Exchanges Commission (SEC), Gary Gensler, has backed Powell’s position of needing tougher regulations for crypto.
Tags: Crypto,Fed,Jerome Powell,Regulation,Stablecoin
Link: Federal Reserve Chairman Calls for Crypto Regulations during Ukraine Conflict [Copy]
