Fed Chief Powell: Cryptos Have Staying Power in US Economy
• US Federal Reserve Chairman Jerome Powell acknowledges the staying power of cryptocurrencies in the US economy.
• He called stablecoins “a form of money”.
• Bitcoin (BTC) rallied over the $30,400 mark amid growing excitement from bullish developments.
Cryptocurrencies have Staying Power
US Federal Reserve Chairman Jerome Powell has acknowledge the staying power of cryptocurrencies in the US economy during a testimony before the House Financial Services Committee on June 21st. The Fed chief also called stablecoins “a form of money” which sent shockwaves across the crypto industry and contributed to a surge in major cryptocurrency prices, including Bitcoin (BTC) rallying over the $30,400 mark.
Congressman Warren Davidson’s Questions
Republican Congressman Warren Davidson asked whether Powell acknowledges that crypto, as an asset class, “has staying power in the US economy” during his testimony and he replied in affirmative. Representative Davidson also pointed out that crypto markets have experienced considerable volatility primarily due to lack of legal clarity and proposed introducing several bills to address this issue, one focusing on stablecoins.
Federal Reserve Endorsement
The statements from Fed Chairman Powell serve as significant endorsement of cryptocurrencies and their potential to play a pivotal role in the US economy. He acknowledged that cryptocurrency has some staying power and went even further by claiming that they saw stablecoins as a form of money.
SEC Clarity Needed
Highlighting SEC actions, Representative Davidson expressed hope that Congress will help bring about clarity for the sector and establish guidelines for SEC to follow. As such, there is an urgent need for regulatory clarity around this space so investors can rest assured knowing their investments are safe from any future changes or fluctuations in regulations.
The remarks made by Federal Reserve Chairman Jerome Powell indicate a positive shift towards recognizing cryptocurrencies as viable investment options with staying power and potential to be used as legitimate forms of currency within United States’ financial systems going forward