The chairman of the US Federal Reserve System (FRS) Jerome Powell said that it is necessary to develop regulation of stablecoins as soon as possible in order to prevent risks to the financial system.
Jerome Powell said that he fully supports the opinion of the Working Group on Financial Markets under the President of the United States. The experts concluded that the issuers of stablecoins should be subject to “relevant federal laws,” and the supervision of these companies should be similar to banking.
“Stablecoins can certainly be a useful and efficient part of the financial system serving consumers if they are properly regulated. This is not the case now. They have the potential to scale, especially if they are connected to one of the very large technology networks, ”Powell said.
The US Federal Reserve Chairman added that while the regulator should explore the possibility of monitoring the cryptocurrency market, he does not see digital assets as a threat to US financial stability. However, Powell noted that the public relies on the government to keep stablecoins safe.
“You could have a payment network that is systemically important but not properly regulated and protected. The public relies on the government and, in particular, the Fed, for the safety and reliability of the payment system, ”he said.
It is quite expected that Powell supported the position of the Biden administration on the eve of the Senate hearings on his re-confirmation as chairman of the US Federal Reserve.
Recall that earlier at the hearings in Congress, opposite options for regulating stablecoins were presented. Some experts suggested stricter regulation, while others supported the introduction of a law that would favor the development of the market. Last week, two US congressmen spoke out in favor of easing regulation of stablecoins.
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