Federal Reserve Chairman Jerome Powell addressed House Democrats regarding the necessity of a legislative framework for stablecoins.
“We need a framework for stablecoins [and I’m] very supportive and am glad that we are close,” Powell said in a closed-door meeting with the House Financial Services Committee.
Powell’s engagement with lawmakers emphasizes the Federal Reserve’s commitment to robust oversight in developing stablecoin and CBDC regulations.
“If we’re going to have a CBDC, Congress needs to authorize it,” he said on the topic of Central Bank Digital Currencies (CBDC), according to Politico.
This topic was also broached during a hearing on monetary policy back in June 2023, where Powell reiterated the Federal Reserve’s stance on payment stablecoins. During the hearing, the Fed chair emphasized the need for central bank credibility in monetary systems.
In July 2023, the House Financial Services Committee approved two bills: The Financial Innovation and Technology for the 21st Century Act and the Blockchain Regulatory Certainty Act. The former established rules for crypto firms’ registration with either the CFTC or SEC and outlined a process for certifying decentralized projects.
The bipartisan Blockchain Regulatory Certainty Act aimed to streamline regulations for blockchain entities, defining which qualified as money transmitters.