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

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.

Interpretation of this information:

In recent news, it has been reported that the Federal Reserve Chairman, Jerome Powell, has spoken out regarding the need for a clearer regulatory framework for cryptocurrency. During a recent public appearance, Powell highlighted that not only is it important for the federal government to play an active role in the regulation of cryptocurrency, but US state governments should also be involved.

Powell’s statement comes in the midst of growing concerns over the potential risks associated with the use of cryptocurrencies, particularly when it comes to issues such as money laundering, fraud and terrorism financing. Powell has urged for a coordinated effort by all parties involved to ensure that these risks are appropriately addressed and that the regulatory framework for cryptocurrencies is strengthened.

Moreover, Powell has also highlighted that the issuance of retail central bank digital currency (CBDC) requires congressional approval. In recent years, several countries have been exploring the possibility of issuing their own digital currencies, which would be backed by their central banks. While the idea of a CBDC has generated much interest and excitement, it has also raised a variety of concerns, particularly around the impact that it could have on the current financial system.

In summary, Federal Reserve Chairman Powell’s recent comments suggest that there is a growing recognition of the need for a clearer regulatory framework for cryptocurrencies. He highlights the importance of coordinated efforts from all stakeholders, including federal and state governments, to address the risks associated with the use of cryptocurrencies. Moreover, Powell’s statement provides clarity on the approval process required for the issuance of retail CBDCs, indicating that congressional approval is necessary.