Federal Reserve Supports Regulatory Efforts for Stablecoins

In a significant move, Jerome Powell, the Chair of the United States Federal Reserve, announced on Tuesday the central bank's support for establishing a regulatory framework around stablecoins. This development comes amidst growing interest and concern over the role of stablecoins in the financial ecosystem.

"Stablecoins hold potential for widespread use among consumers and businesses. While their future impact remains uncertain, it is crucial to develop these digital currencies within a safe and sound regulatory environment," Powell stated during a Senate Banking Committee hearing.

The Federal Reserve is actively engaging with Congress, providing technical insights to shape the proposed legislation. Furthermore, Powell addressed the topic of Central Bank Digital Currency (CBDC), affirming that its introduction is not on the agenda during his tenure.