Fed Chief Calls for Regulation of Stablecoins Similarly to Deposits

Author & Guarantor: Elena Yefimenko

According to Jerome Powell, stable digital coins may become a payment instrument in the future, but for this they need a regulatory framework that does not yet exist in the United States.

Source: news.bitcoin.com

Crypto-Auditor.com found out that the US Federal Reserve Chairman Jerome Powell, speaking in front of the House of Representatives, called for extending the rules for dealing with bank deposits and mutual funds to stablecoins, Decrypt reported.

“It’s very simple: this is an economic activity, very similar to bank deposits and money market funds, and it needs to be regulated in a comparable way,” – explained the head of the Fed.

Powell also admitted that stablecoins can become part of the “payment universe”, unlike cryptocurrencies, but for this, stable digital coins need a regulatory framework that does not yet exist in the United States.

In June, billionaire Mark Cuban called for regulation of stablecoins, who suffered losses due to a sharp depreciation of the Titan token from $ 60 to $ 0. According to Cuban, there should be a clear regulation of the issue of stable blocks and the rules for ensuring its liquidity.

A stablecoin is a digital coin whose value is tied to a specific physical asset. The first such digital currency, USDT from Tether, appeared in 2015. It is pegged to the value of the US dollar in a 1: 1 ratio.

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