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- Jerome Powell, head of the Federal Reserve, stated that the encryption assets have become more prevalent and that the industry is ripe.
- Powell expressed its support for banks that participate with encryption, as long as the regulations guarantee safety and safety.
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Federal Reserve Chairman Jerome Powell said on Wednesday that Bitcoin and other encryption assets have matured and have become more prevalent, and that the central bank is to re -evaluate the policy data made during the Biden era.
Powell’s comments came in response to a question from Senator Sinatia Lomes during his testimony on June 25 before the Senate Banking Committee.
Lummis wondered what has changed regarding Stablecoin’s risks since the Federal Reserve Policy 2023 under Article 9 (13), and Powell pressed whether the Federal Reserve intends to withdraw the policy statement.
Article 9 (13) grants the Federal Reserve Council the authority to organize the activities of the member banks that the state holds. In January 2023, the Federal Reserve issued an official statement of politics under this authority, and clarifies how it will deal with “new activities”, specifically those that involve encryption buttons, the District Professor’s book technology (DLT) and Stablecoins.
“The Council generally believes that issuing symbols on open, public, or decentralized networks, or similar systems is likely to be incompatible with safe and sound banking practices,” according to. Politics statement.
“The industry is mature, and our understanding of it is improving,” Powell said on Wednesday. certificate. “In some sense, it became much more.”
Powell pointed out that the organizers re -evaluate the previous decisions that were taken during the early development phase of Crypto.
“We all reconsider the things that were done during that era,” he said.
The Federal Reserve Chair also indicated the support of banks participating in encryption under appropriate circumstances.
“It is appropriate, it was always appropriate for banks to choose their customers and be able to do activities as long as they are safe and sound,” said Powell.
In the treatment of Policy Statement, Section 9 (13), Powell said it is part of a broader organizational framework not only focused on encryption, although Crypto was one component.
He reiterated that the Federal Reserve is currently reviewing and withdrawing many encryption directions issued during the Biden era.
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