Powell: Supports Stablecoin Regulation, Maintains Open Attitude Towards Cryptocurrency Innovation
Federal Reserve Chairman Jerome Powell emphasized the importance of a stablecoin regulatory framework in a speech at the Chicago Economic Club, stating that the Federal Reserve is open to interactions between the banking industry and the cryptocurrency sector.
Powell mentioned that, given the increasing importance of digital tools, both houses of Congress are reconsidering the legislation to establish a stablecoin framework. He pointed out that although there had been previous ineffective collaboration with Congress on the legal framework for stablecoins, now "the situation is changing" and legislators are showing renewed interest in regulatory norms.
Powell also noted the Federal Reserve's stance on banking activities related to cryptocurrencies, acknowledging that a conservative approach was taken when issuing guidance on how banks manage risks associated with digital assets. However, he expressed that some guidance may be relaxed to accommodate responsible innovation, as long as consumer protection and financial safety are ensured.
He further emphasized that the Federal Reserve does not aim to prevent banks from providing services to legitimate cryptocurrency clients and cited cryptocurrency custody as an example, stating that if banks and regulators understand the scope of these activities, they can safely offer such services.
Powell stated that the Federal Reserve recognizes Congress's efforts to establish a formal regulatory framework for stablecoins. However, he also emphasized the need to seek a balance between encouraging innovation and preventing risks.
Currently, there is no dedicated federal regulatory system for stablecoins, although Congress has proposed several related legislative initiatives that still require further refinement and implementation. In this context, the Federal Reserve's stance is significantly instructive for the future construction of the regulatory framework.
In conclusion, the Federal Reserve's latest position indicates that it will not attempt to prevent banks from serving legitimate cryptocurrency clients. This open attitude signifies that U.S. financial authorities are increasingly willing to engage in integrating digital asset policies into the global financial market system.
At the same time, as the application of stablecoins continues to grow in the payment and digital settlement fields, it not only provides greater development space for the cryptocurrency industry but also offers new possibilities for balancing financial innovation and regulation.
