While digital assets are getting basic adoption, establishing a legal framework for Stablecoins is a “good idea,” US Federal Reserve Chair Jerome Powell said.
In an April 16 panel at the Chicago Economic Club, Powell commented on the evolution of the cryptocurrency industry, which delivered a case of consumer use that “could have a broad appeal” following a difficult “wave of failures and fraud,” he said.
Powell delivers comments to the Chicago Economic Club. Source: Bloomberg Television
In poor crypto years, which ended in 2022 and 2023 With many high -profile business failures, the Fed “has worked with Congress to try to get a (…) legal framework for Stablecoins, which will be a great place to start,” Powell said. “We are not successful.”
“I think the climate is changing and you are moving to the mainstreaming of that whole sector, so Congress is looking back (…) in a legal framework for Stablecoins,” he said.
“Depending on what’s in it, that’s a good idea. We need that. Nothing now,” Powell said.
This is not the first time Powell has recognized the need for Stablecoin law. In June 2023, the Boss of Fed told the House Financial Services Committee Stablecoins are “a form of money” that requires “stable” federal supervision.
https://www.youtube.com/watch?v=Fehvlnyx5oi
Related: Stablecoins is the best way to ensure US dollar dominance – Web3 CEO
Support for Stablecoin law is growing
U.S. president’s election Donald Trump began a new era of Pro-Crypto appointments and policy changes that can make America A digital asset superpower.
Washington’s formal embrace of cryptocurrency began earlier this year when Trump established the president’s council in digital assets, along with Bo Hines as executive director.
Hines said at a digital asset summit In New York last month that a comprehensive Stablecoin bill was a top priority for the current administration. After the Senate Banking Committee passed the Genius ActA final Stablecoin bill can come to the President’s desk “in the next two months,” Hines said.
Bo Hines (right) speaks of “close” stablecoin law at the digital asset summit on March 18. Source: Cointelegraph
The stablecoins that are in the US dollar are by far the most popular tokens used for remittances and cryptocurrency trading.
The combined value of all stablecoins is currently $ 227 billion, according to Rwa.xyz. The dollar pegged USDC (USDC) and USDT (USDT) account for more than 88% of the total market.
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