Fed Chair Powell Reaffirms Support for Stablecoin Legislation

! As digital assets become more widely accepted, establishing a regulatory framework for stablecoins is a "sound idea," Federal Reserve Chairman (Fed) Jerome Powell said.

Speaking at an April 16 panel discussion hosted by the Chicago Economic Club, Powell shared his views on the evolution of the crypto industry, which has gone through a difficult period with a series of crashes and frauds, but has now begun to bring practical applications that can "appeal to a large number of users."

Recalling the volatile years of the crypto market, particularly in 2022–2023 with a series of large-scale bankruptcies, Powell said the Fed has "coordinated with Congress to try to build a regulatory framework for stablecoins — something that should have been done early on." However, "we didn't succeed".

"Now, the landscape is changing. The digital asset industry is moving closer to mainstream and Congress is once again starting to consider building a regulatory framework for stablecoins," he added. "Depending on the specifics, I think it's a good idea. We really need that. At the moment, there is no clear legal framework."

! Jerome Powell – US Fed ChairmanThis is not the first time the Fed Chairman has called for legislation to regulate stablecoins. In June 2023, Powell told the House Financial Services Committee that stablecoins are "a form of money" and should be strictly monitored at the federal level.

Support for stablecoin legislation is growing

The return of President Donald Trump is creating a wave of appointments and policy adjustments in a more crypto-friendly way that could help the US become a superpower in the digital era.

Washington began formally backing cryptocurrencies earlier this year, when Trump established the Presidential Advisory Council on Digital Assets, with Bo Hines serving as chief executive officer.

Speaking at a digital asset conference in New York last month, Hines said enacting comprehensive legislation on stablecoins is one of the current administration's top priorities. After the Senate Banking Committee passed the GENIUS bill, Hines expects the final draft to be presented to the president "within the next two months."

USD-pegged stablecoins are currently the most popular token, mainly used in cryptocurrency trading and cross-border remittances.

The total value of all stablecoins now stands at around $227 billion. The two largest stablecoins, USDC and USDT — both pegged to the U.S. dollar — account for more than 88% of the total market value.

Disclaimer:*** The article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions

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