The US Federal Reserve System (FRS) should be involved in the regulation of “stablecoins”. This was stated by the head of the department, Jerome Powell, during a speech before the Committee on Financial Services of the House of Representatives, writes The Block.
Powell believes that it would be a mistake to leave the Fed with “weak” powers in the segment and allow the creation of a large amount of private money at the state level. He is confident that his office should take part in approving the issuance of stablecoins in the United States.
At the same hearing, House Financial Services Committee Chairman Patrick McHenry informed about plans to vote on bills regulating cryptocurrencies and stablecoins in the second week of July. The head of the Fed was skeptical about this idea and the document as a whole.
The first version of the stablecoin regulation bill was presented in April. In the original version, broad attention was paid to the activities of issuers and control over them.
Later, congressmen proposed an updated version of the document, which deprives the US Securities and Exchange Commission of jurisdiction over this asset class.
During congressional hearings, politicians criticized the bill for outdated data in preparation and insisted on updating the information for the next session.
Source: Cryptocurrency
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