{"id":2833,"date":"2022-03-24T07:05:58","date_gmt":"2022-03-24T07:05:58","guid":{"rendered":"http:\/\/cryptoheretostay.com\/?p=2833"},"modified":"2022-03-24T07:05:59","modified_gmt":"2022-03-24T07:05:59","slug":"fed-chair-powell-says-crypto-needs-new-regulation-citing-risks-to-us-financial-system","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=2833","title":{"rendered":"Fed Chair Powell Says Crypto Needs New Regulation Citing Risks to US Financial System"},"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>The chairman of the Federal Reserve, Jerome Powell, says crypto requires new regulation, citing that it presents risks to the U.S. financial system and could destabilize existing financial institutions.<br \/><\/strong><\/p>\n<h2>Fed Chair Powell Sees the Need for New Crypto Regulation<\/h2>\n<p>Federal Reserve Chairman Jerome Powell talked about the need to establish new regulation for cryptocurrency Wednesday during a panel discussion on digital currencies organized by the Bank for International Settlements (BIS).<\/p>\n<p>Noting that new forms of digital money, including cryptocurrencies and stablecoins, will require new rules to protect consumers, the Fed chairman said:<\/p>\n<p>Our existing regulatory frameworks were not built with a digital world in mind \u2026 Stablecoins, central bank digital currencies, and digital finance more generally, will require changes to existing laws and regulation or even entirely new rules and frameworks.<\/p>\n<p>Powell reiterated his stance that crypto ought to follow the \u201csame activity, same regulation\u201d principle. In October last year, he suggested regulating stablecoin issuers like banks. \u201cStablecoins are like money market funds. They\u2019re like bank deposits \u2026 and it\u2019s appropriate that they be regulated, same activity, same regulation,\u201d he opined.<\/p>\n<p>He added that \u201cIt\u2019s highly likely that digital financial activities that are currently outside the regulatory perimeter\u201d will be regulated, \u201cwhich is necessary to level the playing field, keep the trust of users, protect consumers and all that.\u201d<\/p>\n<p>The Federal Reserve chairman acknowledged that new technologies will likely make electronic payments cheaper and faster. However, he pointed out that they present risks to the U.S. financial system and could destabilize existing financial institutions.<\/p>\n<p>Powell further stressed that crypto assets \u201chave been used to facilitate illicit activity,\u201d such as money laundering. He noted:<\/p>\n<p>We need to prevent this so that the innovations that do survive and do attract broad adoption are those that provide value over time.<\/p>\n<p>The Fed chair also warned that Americans who buy cryptocurrencies and stablecoins \u201cmay not fully understand the extent of their potential losses, or that these investments generally lack the government protections that accompany many of the traditional financial instruments and services that they\u2019re used to.\u201d<\/p>\n<p><em><strong>What do you think about Fed Chair Powell\u2019s comments? 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-crypto-needs-new-regulation-risks-to-us-financial-system\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The chairman of the Federal Reserve, Jerome Powell, says crypto requires new regulation, citing that it presents risks to the U.S. financial system and could destabilize existing financial institutions. Fed Chair Powell Sees the Need for New Crypto Regulation Federal Reserve Chairman Jerome Powell talked about the need to establish new regulation for cryptocurrency Wednesday [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2834,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[1],"tags":[],"class_list":["post-2833","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\/2833","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=2833"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/2833\/revisions"}],"predecessor-version":[{"id":2835,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/2833\/revisions\/2835"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/2834"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2833"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2833"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2833"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}