• US Federal Reserve Chairman Jerome Powell acknowledges the staying power of cryptocurrencies in the US economy.
• He also called stablecoins “a form of money”.
• Bitcoin (BTC) rallied over the $30,400 mark amid growing excitement from bullish developments.
Fed Recognizes Blockchain and Cryptocurrency Staying Power
US Federal Reserve Chairman Jerome Powell recently acknowledged that cryptocurrencies have a “staying power” in the US economy. His statement sent shockwaves across the crypto industry as he also recognized stablecoins as a form of currency. Bitcoin (BTC) reacted positively to his announcement, rallying over the $30,400 mark on news of this bullish development.
Fed Chief Acknowledges Crypto Staying Power
Federal Reserve Chairman Jerome Powell answered questions about cryptocurrency and stablecoins during his testimony before the House Financial Services Committee on June 21. When asked if he acknowledged that crypto, as an asset class, “has staying power in the US economy”, Powell replied in affirmative with “It appears to have some staying power.” This statement serves as a significant endorsement of cryptocurrencies and their potential to play a pivotal role in the US economy.
SEC Regulatory Clarification Sought
Republican Congressman Warren Davidson pointed out that the crypto market has experienced considerable volatility primarily due to lack of legal clarity surrounding regulations set by Securities and Exchange Commission (SEC). To address this issue, Davidson expressed hope that lawmakers can introduce several bills focusing on establishing guidelines for SEC actions regarding cryptos and stablecoins.
Stablecoin Recognized As Form Of Money
In a groundbreaking move, Chairman Powell said that Federal Reserve sees stablecoins as a form of currency when questioned about it by Representative Davidson. This news sent shockwaves across the crypto industry as major cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) skyrocketed after hearing these statements from Fed chairman.
The statements from Federal Reserve Chairman Jerome Powell serve as an acknowledgement that cryptocurrencies are here to stay in US economy and they may be recognized as official currency soon enough with help from SEC regulations clarification by legislative bodies around USA.