Jerome Powell clarifies his previous statements on cryptocurrencies and stablecoins.
- Jerome Powell Says Reasonable Things About Crypto
- Market Recovery
Jerome Powell Says Reasonable Things About Crypto
We applaud @reptomemmer @RepRoKhanna @RepDarrenSoto @CongressmanGT @RepFrankLucas @RepSwalwell @RepTedBudd for submitting a bipartisan letter to Fed Chair Powell concerning #digitalassets, #cryptocurrency, & #CBDCs.
— Chamber of Digital Commerce (@DigitalChamber) September 29, 2021
During a hearing of the House Committee On Financial Services, Fed Chair Jerome Powell said that he has no “intention to ban” crypto. Powell’s answer stemmed from Senator Ted Budd, a member of the blockchain caucus, seeking clarification on whether he plans to, “ban or limit the use of cryptocurrencies, like we’re seeing in China?”
Back in July, Powell said there would be no need for stablecoins if the US brought its own CBDC to market. As well, Powell said that cryptocurrencies have “completed failed” as a form of payment “except for people who desire anonymity, of course, for whatever reason.”
Powell’s comments put to rest any lingering concerns that cryptocurrencies will be banned in the same manner as they have in China. Though, he did continue to call for more regulation of stablecoins.
Recommended: For more on stablecoins and regulation.
Powell’s comments came just a day after a letter was submitted to Powell by several senators stating the need for private sector digital asset innovation.
Market Gets Sweaty Over Jerome Powell’s Comments
The much-needed clarification gave the market a much-needed boost. The global market cap fell as low as 1.5 trillion USD on Tuesday. It had improved a bit to its recent average of 1.9 trillion as of yesterday. It’s now up 7%, just below 2.1 trillion.
As far as top 10 cryptocurrencies by market cap, Binance Coin (ticker symbol: BNB) is leading the way with an over 10% rise. Binance’s exchange coin is trading in the $410 range. Meanwhile, the biggest crypto by market cap, Bitcoin is up over 9%, trading above 47k for the first time since September 19th.
Crypto’s 2nd and 3rd largest coins are also seeing a boost. Ethereum is trading almost 8 percent higher the last 24 hours, trading in the $3,200 range. While Cardano is up 5%, trading in the $2.20 range.
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