Jerome Powell and Democrats – debate on stablecoin regulations

Jerome Powell Met with Democrats on the Issue of Stablecoins

The Chair of the Federal Reserve System, Jerome Powell, recently attended a closed-door meeting with Democrats from the House Financial Services Committee. The discussions revolved around the regulation of stablecoins, a topic that has been causing significant controversy in the United States.

Support for Legal Frameworks Concerning Stablecoins

During the meeting, Powell emphasized the urgent need to establish legal frameworks for stablecoins. He also expressed his support for an upcoming agreement in this matter, which could have a significant impact on the sector’s development.

Dispute Between Republicans and Democrats Over Stablecoin Regulation

As reported in the corridors of power, a month ago, Republicans managed to push through a stablecoin bill in the committee, despite opposition from Democrats. This is just one of many clashes between the two major political parties in the U.S. regarding the regulation of new financial technologies.

CBDC – Central Bank Digital Currency in the United States

Jerome Powell also commented on the Central Bank Digital Currency (CBDC), pointing out that the decision to introduce such a currency would need approval from Congress. The Fed does not take initiative on this matter but is awaiting actions from lawmakers.

Challenges in Passing CBDC Legislation

The process of passing legislation regarding the Central Bank Digital Currency may face several challenges, especially concerning its impact on bank lending and privacy issues. Republicans and Democrats have differing approaches to CBDC, making it difficult to reach a broad consensus on the issue.

States and Their Approach to CBDC

It is worth noting that disputes over the Central Bank Digital Currency are not limited to Congress. Differences of opinion also arise at the state level. Three states have already passed laws to prevent the potential introduction of CBDC, while another 13 are considering similar regulations. This just goes to show how complex and evolving the current legal landscape is surrounding electronic currencies.