Jerome Powell is known in the cryptocurrency industry for his “BRRRRRRR” meme in which he is seen printing dollars as Monopoly tickets. However, the current head of the US Federal Reserve Bank (Fed) is also under scrutiny for his monetary management, the consequences of which are being felt throughout the digital economy.
This stance also requires the Fed to keep a close eye on the development of the stablecoin market, which is a direct and private competitor to the US dollar. And it is precisely in this context that the Federal Reserve Board just granted them (quasi)currency status. This is in relation to the Stablecoin Trust Act, which should define the limits of a legal framework suitable for this digital stability economy.
Fed – Stablecoins are “a form of money”.
Obviously, the Fed's goal is not to promote the development of stable currencies. However, his approach is not to completely block its development. In fact, Jerome Powell's stated goal in this matter is to create a limited number of licenses (58) of which only two would require "federal regulatory approval." The others would be the responsibility of the various states or competent jurisdictions.
"We consider stablecoins a form of money (…) We consider it appropriate that federal authorities are strongly involved in the democratization of stablecoins. It would be a mistake to stand by and allow the creation of numerous private currencies at the state level.. "
A check deemed necessary by Jerome Powell, because according to him "allowing the creation of a lot of private money at the government level would be a mistake.“And from his point of view, we can easily understand that.
United States – Who will regulate stablecoins?
But the problems have only just begun. The Fed chairman's stance on stablecoins is (obviously) at odds with the Securities and Exchange Commission (SEC) head Gary Gensler's frenzy on financials. Nor with that of Rostin Behnam, president of the Commodity Futures Trading Commission (CFTC), who considers them as raw materials.
Probable reason why Jerome Powell is careful not to talk about "payments in stablecoins" every time". Because it's the only one legally mandated to handle something like a currency.
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