Jerome Powell has advocated an active role for the federal government in regulating the stablecoin industry. Speaking before representatives of the Financial Services Committee of the House of Representatives of Congress, the head of the department said that the central bank is obliged to have the final say in approving the volume of issuance of stablecoins. Powell called the legislators’ big mistake the role of an extra, prepared for the financial regulator when agreeing to issue a significant amount of private money.
“We view payment stablecoins as money, and we think it would be appropriate for the Fed to have significant influence at the federal level on what happens to stablecoins. The weak position of the regulator and the uncontrolled permission to create a large amount of private money would be a deliberate mistake,” the official said.
House Financial Services Committee Chairman Patrick McHenry responded by saying that he expects a vote on the stablecoin bill, as well as a digital asset market structure bill, in the first half of July.
Earlier, JPMorgan bank experts shared their assumption that lawmakers may try to separate the ether into a separate category of digital assets in order to get it out of the Securities and Exchange Commission (SEC).
Source: Bits
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