1. PixelPlaygroundHome
  2. Blockchain Briefs

Federal Reserve Chairman Powell Urges Clarity in Cryptocurrency Regulation

• Blockchain Briefs • 121 views

It is reported that Federal Reserve Chairman Powell once again called for a clear regulatory framework for cryptocurrency. Federal Reserve Chairman Powell said…

Federal Reserve Chairman Powell Urges Clarity in Cryptocurrency Regulation

It is reported that Federal Reserve Chairman Powell once again called for a clear regulatory framework for cryptocurrency. Federal Reserve Chairman Powell said that US state governments should also play an active role in the regulation of cryptocurrency. The issuance of retail central bank digital currency (CBDC) requires congressional approval.

Federal Reserve Chairman Powell once again called for a clear regulatory framework for cryptocurrency

Analysis based on this information:


Federal Reserve Chairman Jerome Powell recently called for a clearer regulatory framework for cryptocurrency. Powell emphasized that the U.S. state governments should also take an active role in regulating cryptocurrency. He suggested that clear guidelines are essential for ensuring market stability, stopping illegal activities and protecting consumers.

The rise of cryptocurrency has disrupted traditional financial systems and established a new world of decentralized finance. The decentralized nature of cryptocurrency makes it difficult for governments to control and regulate. As more individuals and organizations transact with cryptocurrencies, many are calling for a regulatory framework to ensure responsible practices.

The Federal Reserve plays an essential role in the financial industry, and Powell believes that they should take an active part in helping shape the cryptocurrency regulatory framework. The Federal Reserve has previously explored introducing their digital currency, which has led to discussions across regulatory agencies globally. However, Powell made it clear that issuing a retail central bank digital currency (CBDC) requires congressional approval.

With the rise of cryptocurrency, several countries have begun to explore creating their digital currency. However, these digital currencies are still in the trial phase, with many challenges yet to be addressed, particularly regarding regulatory frameworks. A digital currency issued by central banks is expected to provide greater financial inclusion, efficiency, and lower transaction costs.

Powell believes that clear regulatory frameworks are essential to have public trust and increase cryptocurrency’s adoption rates while keeping it aligned with existing monetary and regulatory systems. Many cryptocurrency leaders have also called for clear regulatory frameworks to encourage mainstream adoption of cryptocurrencies.

In conclusion, Powell’s call for a clear regulatory framework for cryptocurrency is a welcome development for the industry. A clear regulatory framework will encourage responsible practices, ensure market stability, and protect consumers. The regulatory framework should be designed to balance innovation and consumer protection to promote the development of cryptocurrency while safeguarding investors and consumers.

This article and pictures are from the Internet and do not represent Fpips's position. If you infringe, please contact us to delete:https://www.fpips.com/8986/

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.

Like (0)
Previous 03/08/2023 15:38
Next 03/08/2023 15:59

Recommended articles