Up to 7 US Congressmakers have sent an open letter to Federal Reserve Chairman Jerome Powell asking how the American bank is moving in support of currency-related innovation.
Accordingly, U.S. lawmakers asked four questions about Powell’s plan on crypto-related policies.
U.S. lawmakers want to know Powell’s plans to support cryptocurrency
Led by Reps Tom Emmer, Ted Budd, Ro Khanna, Darren Soto, Frank Lucas, Glenn “GT” Thompson, and Eric Swalwell, he outlines the Fed Chairman’s earlier views on how to digitize the US dollar, what the Demand for existing digital currencies will weaken.
“On July 14, 2021, you appeared before the House of Representatives Financial Services Committee, giving details of the Federal Reserve’s work in developing a bank’s digital currency, Centralization (CBDC), your concerns about stablecoin regulation, and your view of the CBDC the demand for decentralized digital assets will be undermined. “ Legislature written.
“With these comments in mind, we would like to know if you and the Federal Reserve Board of Governors intend to support domestic innovation and the widespread adoption of decentralized digital assets.”
Building on the necessary clarity, they asked Chairman Jerome Powell four key questions to better understand the top bank’s plans for several facets of crypto innovation.
U.S. lawmakers ask 4 questions about Powell’s plan to support cryptocurrencies
Lawmakers requested a clear understanding of the role of the Federal Reserve in coordinating with other lawmakers, including, but not limited to, the U.S. Securities and Exchange Commission (SEC) and the Exchange Commission guidelines for the crypto industry.
Powell was also asked to provide details on the form of guidance the Federal Reserve is making available to Federal Notary Public banks that wish to provide crypto custody and other related services. This investigation is triggered, according to the legislature, by actions by the banking regulators in Texas and Wyoming, whose laws favor financial institutions that offer Bitcoin custody.
Congressmen planning to unveil a discussion document on the central bank digital currency (CBDC) this summer have also been highlighted by congressmen who want to know the timing. The exact article is published.
Eventually, Chairman Powell was asked to clarify his conflicting stance on private crypto demand with the advent of the digital dollar.
Why Legislators Want To Know Powell’s Plan
The main reason for asking the questions, according to lawmakers, is to understand what the country’s leading currency watchdog is doing to maintain its leadership in financial innovation. This ranges from the increasing approval of its first Bitcoin ETF product to the rapid development of CBDCs, the aspects of which many countries are developing.
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