Jerome Powell as head of the Federal Reserve proclaimed that stablecoins needed specific legal rules for their regulation. At a Chicago presentation on April 16 he stated that Congress continues its efforts to establish formal rules for these digital assets because stakeholders find them appealing. Any regulatory framework needs to include provisions for consumer protection as well as transparent disclosure practices.
Evolving Approach to Crypto and Banking
In his presentation Powell discussed the relationship between banks and cryptocurrency operations. The deputy chairman exposed a possibility to ease regulatory guidance toward responsible digital currency development although current agencies remain hesitant. Safety preservation alongside customer protection represents the main areas of focus according to the speaker.
Regulators Not Blocking Crypto Access
The Federal Reserve under Chairman Powell wants to prevent only illegal crypto operations from securing banking services. Crypto custody has proven to be safe under current regulations and serves as an example according to him.
A Growing Case for Oversight
The quantity of stablecoin transfers increased past Visa’s processed amount to reach $14 trillion during the previous year. Powell argued for more extensive and refined regulations to manage growing stablecoin and cryptocurrency payment practices. The central bank leader noted congressional support increasing for new legislation as he referred to the STABLE Act and GENIUS Act.
Powell Calls for Stablecoin Rules
The Federal Reserve Chair expresses support for innovative technologies while seeking established operational guidelines under his dual-track approach. The growing acceptance of stablecoins leads regulators to implement regulatory frameworks that will not prohibit innovation.
