THELOGICALINDIAN - The administrator of the Federal Reserve Jerome Powell says crypto requires new adjustment citation that it presents risks to the US banking arrangement and could destabilize absolute banking institutions
Fed Chair Powell Sees the Need for New Crypto Regulation
Federal Reserve Chairman Jerome Powell talked about the charge to authorize new adjustment for cryptocurrency Wednesday during a console altercation on agenda currencies organized by the Bank for International Settlements (BIS).
Noting that new forms of agenda money, including cryptocurrencies and stablecoins, will crave new rules to assure consumers, the Fed administrator said:
Powell common his attitude that crypto care to chase the “same activity, aforementioned regulation” principle. In October aftermost year, he adapted acclimation stablecoin issuers like banks. “Stablecoins are like money bazaar funds. They’re like coffer deposits … and it’s adapted that they be regulated, aforementioned activity, aforementioned regulation,” he opined.
He added that “It’s awful acceptable that agenda banking activities that are currently alfresco the authoritative perimeter” will be regulated, “which is all-important to akin the arena field, accumulate the assurance of users, assure consumers and all that.”
The Federal Reserve administrator accustomed that new technologies will acceptable accomplish cyberbanking payments cheaper and faster. However, he acicular out that they present risks to the U.S. banking arrangement and could destabilize absolute banking institutions.
Powell added fatigued that crypto assets “have been acclimated to facilitate adulterous activity,” such as money laundering. He noted:
The Fed armchair additionally warned that Americans who buy cryptocurrencies and stablecoins “may not absolutely accept the admeasurement of their abeyant losses, or that these investments about abridgement the government protections that accompany abounding of the acceptable banking instruments and casework that they’re acclimated to.”
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