"Wow Powell is the best, will the stablecoin regulations be implemented as soon as possible?"
Speaking to House Democrats in a closed-door meeting with the House Financial Services Committee, Federal Reserve (Fed) Chairman Jerome Powell called on Congress to develop a legislative framework for stablecoins.
Powell's discussion also outlined the future of digital currency in the United States (US) as part of a broader effort by the Fed to ensure that the development of stablecoins and Central Bank Digital Currencies (CBDCs) are under firm supervision.
Any move towards the adoption of stablecoins or CBDCs would require clear authorization from Congress, so Powell was quick to emphasize the need for central bank credibility in the monetary system.
As the push for stablecoin regulation erupted, legislative action as evidenced by the passage of two critical bills by the House Financial Services Committee in July 2023 was implemented.
While the Financial Technology and Innovation for the 21st Century Act and the Blockchain Regulatory Certainty Act represent significant progress towards creating a more structured regulatory environment for crypto firms and blockchain entities.
In addition to establishing a comprehensive framework for crypto firms to register with either the CFTC or the SEC, it also introduces a decentralized project certification process to foster innovation while ensuring consumer protection is guaranteed.
On the other hand, the Blockchain Regulatory Certainty Act aims to harmonize the rules for blockchain entities specifically determining which entities qualify as money transmitters.
