{"id":10777,"date":"2023-03-08T03:28:15","date_gmt":"2023-03-08T03:28:15","guid":{"rendered":"http:\/\/cryptoheretostay.com\/?p=10777"},"modified":"2023-03-08T03:28:16","modified_gmt":"2023-03-08T03:28:16","slug":"fed-chair-powell-on-crypto-we-see-turmoil-fraud-lack-of-transparency-run-risk","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=10777","title":{"rendered":"Fed Chair Powell on Crypto: We See Turmoil, Fraud, Lack of Transparency, Run Risk"},"content":{"rendered":"<p> <script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<\/p>\n<p><strong>Federal Reserve Chairman Jerome Powell has outlined several risks related to crypto activities during a hearing before the Senate Committee on Banking, Housing, and Urban Affairs. While stating that the Fed sees turmoil, fraud, a lack of transparency, and run risk in the crypto space, he stressed: <\/strong><strong>\u201cWe don\u2019t want regulation to stifle innovation.\u201d<\/strong><\/p>\n<h2>Fed Chairman Outlines Risks in Crypto Activities<\/h2>\n<p>Federal Reserve Chairman Jerome Powell answered some cryptocurrency questions before the Senate Committee on Banking, Housing, and Urban Affairs on Tuesday. During the hearing, Senator Sherrod Brown (D-OH), the committee\u2019s chairman, asked Powell about the risks posed by crypto assets and how the Fed is evaluating the risks of crypto-related activities by its supervised institutions.<\/p>\n<p>\u201cWe\u2019ve been quite active in this area,\u201d Powell replied. \u201cWe believe innovation is very important over time to the economy. We don\u2019t want to stifle innovation, we don\u2019t want regulation to stifle innovation in a way that just favors incumbents, that kind of thing.\u201d The Fed chair added:<\/p>\n<p>We are watching what\u2019s been happening in the crypto space. What we see is quite a lot of turmoil, we see fraud, we see a lack of transparency, we see run risk \u2014 lots and lots of things like that.<\/p>\n<p>\u201cSo what we\u2019ve been doing is making sure that the regulated financial institutions that we supervise and regulate are careful, are taking great care in the ways that they engage with the whole crypto space,\u201d the Fed chairman continued.<\/p>\n<p>Powell noted that the Federal Reserve has issued several joint notices with the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC), warning banks and regulated financial institutions about cryptocurrency risks.<\/p>\n<p>In February, the Fed, FDIC, and OCC jointly warned about crypto\u2019s liquidity risks. In January, the three regulators cautioned: \u201cBanking organizations should ensure appropriate risk management, including board oversight, policies, procedures, risk assessments, controls, gates and guardrails, and monitoring, to effectively identify and manage risks.\u201d<\/p>\n<p>Tags in this story<\/p>\n<p>Crypto regulation, Cryptocurrency regulation, Federal Reserve, Federal Reserve Chairman, Federal Reserve Chairman Jerome Powell, jerome powell crypto, Jerome Powell cryptocurrency, Senate hearing, senate hearing crypto, senate hearing cryptocurrency, Sherrod Brown<\/p>\n<p><em><strong>What do you think about the statements by Federal Reserve Chairman Jerome Powell about cryptocurrencies? Let us know in the comments section below.<\/strong><\/em><\/p>\n<p>Kevin Helms <\/p>\n<p class=\"article__body__author__info__about\">\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.<\/p>\n<p><i class=\"td-icon-font td-icon-mail-1\"\/><\/p>\n<p class=\"images_credits\"><em>Image Credits: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n<p><strong>Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<p>More Popular NewsIn Case You Missed It<\/p>\n<p><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/news.bitcoin.com\/fed-chair-powell-on-crypto-we-see-turmoil-fraud-lack-of-transparency-run-risk\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Federal Reserve Chairman Jerome Powell has outlined several risks related to crypto activities during a hearing before the Senate Committee on Banking, Housing, and Urban Affairs. While stating that the Fed sees turmoil, fraud, a lack of transparency, and run risk in the crypto space, he stressed: \u201cWe don\u2019t want regulation to stifle innovation.\u201d Fed [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":10778,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[1],"tags":[],"class_list":["post-10777","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-updates"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/10777","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10777"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/10777\/revisions"}],"predecessor-version":[{"id":10779,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/10777\/revisions\/10779"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/10778"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10777"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10777"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10777"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}