United States President Joe Biden has re-nominated Jerome Powell, the current chair of the Federal Reserve, for a second term.
Powell is a cautious supporter of the cryptocurrency sector, emphasizing the importance of regulation.
According to an official notification issued on Nov. 22, Biden has renominated Federal Reserve Chair Jerome Powell to the job.
Powell would be serving his second term as Chair of the Federal Reserve System’s Board of Governors.
Dr. Lael Brainard, who has advocated for a digital currency, was also nominated by Biden to serve as Vice-Chair of the Fed’s SBG.
Powell’s views on cryptocurrency
Powell and Brainard, according to Biden, have both served the economic agenda well, giving “solid leadership” at a difficult moment. In December 2021, appointments for other seats will be made.
Powell has previously made statements about the cryptocurrency market that were neither disparaging nor favorable.
When it comes to the asset class, he advises prudence, stating that the legislation should adhere to existing laws.
Powell has indicated unequivocally that a crypto prohibition is unnecessary, but that regulation is required.
He delivered these remarks before the House Financial Services Committee. A prohibition was never a major issue for crypto investors in the United States, but it did provide some solace to the community.
Both Powell and Brainard have mentioned the possibility of a central bank digital currency (CBDC), but their current stance is one of caution.
Powell is particularly concerned about stablecoins, which he feels should be regulated – something that several U.S. authorities are already considering.
Powell’s crypto future
If history is any guide, the Bitcoin sector has a bright future under Powell. He, Brainard, and many others have never taken a harsh stance on cryptocurrency.
Rather than “doing it first”, the approach appears to be “getting it right”. As for CBDCs, this remark was made in reference to China’s CBDC activities. But this could also apply to their broader regulatory stance.
In any event, the U.S. is preparing a detailed market analysis. Next year will be a major year for the crypto business in the U.S., possibly even a good year.
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