U.S. lawmakers are urging Fed Chairman Powell to support crypto innovation

Several U.S. lawmakers are urging the president of Federal Reserve System (Fed) Jerome Powell to promote cryptocurrency innovation. “The Federal Reserve must work to support domestic innovation – our government should never try to thwart innovation.”

Members of Congress are urging Fed Chairman Powell to support crypto innovation

Several members US Congress sent letter to the President of the Fed Jerome Powell, in which he is asked several questions about the Fed’s efforts to control cryptocurrencies. The letter was signed by representatives of both parties Tom Emmer, Darren Soto, Frank Lucas, Ted Budd, Ro Khanna, Glenn “GT” Thompson and Eric Swalwell.

Deputy Emmer described:

“Our top priority should be to empower individual Americans to become everyday investors – decentralized digital assets provide this opportunity. The Federal Reserve must work to support domestic innovation – Our government should never try to thwart innovation. “

The congressman explained his letter “Stresses its concern at Powell’s statement that the biggest supporting argument for the Fed’s digital currency is that it could eliminate the need for private sector innovation.”.

The letter emphasizes that cryptocurrencies are subject “Overlapping regulation from several regulators”, including the Fed, the Financial Crime Enforcement Network (FinCEN), the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

Legislators’ questions about Jerome Powell

Aware that the adoption of cryptocurrencies “faltered due to a lack of clear regulations,” Powell was asked what steps the Fed was taking. “To coordinate with other federal regulators in developing policies for digital assets, such as cryptocurrencies, and other important related policy issues, such as custody and accounting, to ensure that the United States remains a leader in financial innovation.”

In addition, the Fed President was asked what steps the Fed is taking, either alone or in coordination with regional federal reserve banks, to ensure clear regulations banks that they want to offer their customers safekeeping of cryptocurrencies or other digital assets.

President Powell was also asked when the Fed planned to issue a discussion paper on the proposal US Federal Reserve Digital Currency (CBDC) and whether he believes that the CBDC would make cryptocurrencies and their applications – “From decentralized identity to decentralized file storage” – unnecessary.

Legislators’ letter to Powell ends with a request:

“We appreciate your prompt response to the questions raised in this letter, no later than October 15, 2021.”

Powell testified before the House Financial Services Committee three months ago, stating that “You wouldn’t need stablecoins, you wouldn’t need cryptocurrencies if you had US digital currency”. He recently admitted that he had renounced himself and that the word cryptocurrency should be omitted from the statement. Last week he said Republican Ted Budd that he does not intend to ban or restrict the use of cryptocurrencies.