Federal Reserve Board Chair Jerome Powell has spoken in support of crypto legislation through the latest stablecoin bill of the US.
A US House Committee had recently conducted hearings on the proposed stablecoin bill in the country, which could become the first crypto legislation of the US if passed. At the hearing conducted by the House of Representatives Financial Services Committee, the Federal Reserve Board’s Chairman Jerome Powell was present.
Committee member Maxine Waters asked Powell about the stablecoin bill and the proposed changes the crypto legislation would bring to the industry. Powell replied to him, saying, “We do see payment stablecoins as a form of money, […] and we believe that it would be appropriate to have quite a robust federal role in what happens in stablecoin going forward.”
Powell’s recognition of stablecoins as money could come as a huge boost for the crypto industry amidst regulatory action by other authorities such as the Securities and Exchange Commission. While being open to crypto legislation, other agencies in the US have held opposing views to the Federal Reserve Board.
While some believe stablecoins should be regarded as securities, others believe they could be registered as commodities. The Commodity Futures Trading Commission echoed these claims.
A stablecoin bill could be the first step for future regulation in the sector. A big country like the US has different opinions on crypto legislation, but the Federal Reserve Board’s support would be a bonus.