The Chairman of the Federal Reserve of the United States (Fed), Jerome Powell, affirmed the need to establish a legal framework for stablecoins and stated that the process is being expedited.
MAIN CONTENT
Fed Chairman Jerome Powell emphasizes the need to build a legal framework for stablecoins.
The process of completing the stablecoin policy is being promoted by the competent authorities.
The legal framework regarding stablecoins will contribute to enhancing stability and transparency in the cryptocurrency market.
What did Fed Chairman Jerome Powell say about stablecoins?
According to the official statement by Fed Chairman Jerome Powell on July 1, 2024, building a legal framework for stablecoins is essential to better regulate the cryptocurrency market.
Mr. Powell emphasized the urgency of protecting users and ensuring comprehensive financial stability.
Establishing a clear legal framework for stablecoins not only strengthens consumer safety but also ensures stability for the national financial system.
Jerome Powell, Chairman of the Federal Reserve of the United States (Fed), 01/07/2024
What is the importance of the stablecoin legal framework in modern finance?
The legal framework for stablecoins enhances transparency, controls risks, and prevents fraudulent activities, thereby protecting users and the global financial system.
According to a report by a financial expert at the Bank for International Settlements (BIS) in 2023, the lack of clear regulation is the main cause of instability and uncontrolled risks in freely developed stablecoin projects.
What is the current progress of stablecoin policy development?
Leading financial regulatory agencies worldwide, including the Fed, are accelerating their research and regulation development to control stablecoin activities.
The goal is to create a synchronized legal corridor, support sustainable development, and ensure the legality of these stable cryptocurrencies.
We are committed to expediting the establishment of a stable legal framework so that cryptocurrencies, especially stablecoins, can be safely integrated into the modern financial system.
Jerome Powell, Chairman of the Federal Reserve of the United States, 01/07/2024
How will the stablecoin legal framework impact the cryptocurrency market?
Having a clear legal framework is expected to minimize risks such as excessive price volatility, fraud, money laundering, and help increase trust for both investors and ordinary users.
This also promotes cooperation between traditional financial institutions and the blockchain sector, thereby enhancing the safe and controlled application of DeFi technology.
How are countries and financial organizations implementing stablecoin regulations?
The United States, European Union (EU), UK, and Japan have all implemented or are implementing strategies to develop a stable legal framework to tightly manage and supervise stablecoins.
For example, the EU with the MiCA (Markets in Crypto-Assets) project aims to comprehensively control the cryptocurrency market, while the Fed focuses on financial stability and consumer protection.
Frequently Asked Questions
What is a stablecoin? A stablecoin is a type of cryptocurrency with a stable value, often pegged to assets such as the USD, helping to reduce volatility compared to other coins.
Why is a legal framework needed for stablecoins? A legal framework helps control risks, protect investors, and ensure the stability of the financial system.
What does Fed Chairman Jerome Powell say about stablecoins? He emphasizes the need to build a legal framework to regulate stablecoins, and this is being actively pursued.
How does the legal framework for stablecoins affect the market? It helps reduce fraud risk, increase transparency, enhance trust, and promote safer cryptocurrency applications.
What have major countries done regarding stablecoin laws? The United States, EU, UK, and Japan have all developed or are developing regulations to effectively manage this type of cryptocurrency.
Source: https://tintucbitcoin.com/stablecoin-can-khung-phap-ly-on-dinh/
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