Fed Chairman Believes Agency Should Regulate Stablecoins
Federal Reserve Chairman Jerome Powell expressed support for a strong federal role in regulating the stablecoin sector on Wednesday, speaking in front of the House Financial Services Committee.
He argued that the central bank should have a significant role in the approval of stablecoin issuance, as he believes they are “money.”
This opinion goes against the Republican-led proposal for state approval and preemption of stablecoin issuers. House Financial Services Committee member Rep. Maxine Waters also showed skepticism about giving states the sole authority to regulate stablecoins, saying it was a “whole new level” of preemption.
As the Republican bill needs support from both Democrats and the President Joe Biden in order to become law, its chances of passing are slim.