- The head of the Fed said that stablecoins are money
- However, Powell was skeptical about the creation of a common stablecoin regulation system.
Speaking to the House Financial Services Committee, Federal Reserve Chairman Jerome Powell, did unexpected statement regarding stablecoins. He stated that stablecoins are money and that the central bank should play a role in approving their issuance in the US.
“We view stablecoins as monetary units. The central bank should play an important role in approving their issuance. It seems to us that there should be proper federal involvement in the development of stablecoins in the future, and it would be a mistake to limit ourselves to a weak role and allow the expansion of a lot of private money at the state level. Jerome said.
Powell also expressed his position on the new bill, which provides for the creation of a stablecoin regulation system. The Fed chairman expressed skepticism about the approval and benefit given to stablecoin issuing states, which is now included in a proposal developed by the Republican committee for further discussions.
Circle, the USDC stablecoin issuer, is supporting the creation of a new structure for stablecoin issuers. There has long been a widespread complaint in the fintech sector about the lack of access to centralized registration for doing business throughout the United States. Instead, companies have to register as financial service providers in each individual state.
It is expected that the bill on stablecoins will be considered in the second week of July, and along with it, the issue of transferring digital assets from the category of securities to the category of goods will be discussed.