Jerome Powell, the current chair of the Federal Reserve, has been selected to his position for a second time by United States President Joe Biden. Powell is someone who cautiously accepts the crypto market, though he stresses regulation.
United States President Joe Biden has renominated Federal Chair of Reserve Jerome Powell to the position, according to an official announcement published on Nov. 22. This would be Powell’s second term as Chair of the Board of Governors of the Federal Reserve System. President Biden also nominated Dr. Lael Brainard, who has talked about a digital dollar, to serve as the Vice-Chair of the Board of Governors of the Federal Reserve System
The US President believes that Powell and Brainard have both served the economic agenda well, providing “steady leadership” through a challenging period. Appointments for other positions will be made in December 2021.
Powell has made comments on the crypto market before, and it has been neither dismissive nor supportive. He urges caution when it comes to the asset class, saying that the regulation should comply with existing laws.
Powell has explicitly stated that a crypto ban was not necessary, but that regulation was a must. He made these comments before the House Committee on Financial Services. A ban was never really a concern for U.S. crypto investors, but it did bring a sigh of relief to the community.
Both Powell and Brainard have talked about a central bank digital currency (CBDC), though as it stands, their position is one of caution. Powell, in particular, has some concern about stablecoins, which he believes should be regulated — which some U.S. authorities are already working on.
The future of crypto under Powell
The future of the cryptocurrency market under Powell looks fairly good if history is anything to go by. He, along with Dr. Brainard and many other colleagues, have by no means taken a draconian view on cryptocurrencies.
Rather, the approach appears to be one of “getting it right” as opposed to getting it done first. This remark was made on the subject of CBDCs, which may be interpreted as a stab at China’s CBDC efforts. However, this could even be applied to their approach on general regulation.
In any case, the United States is gearing up for a thorough review of the market. 2022 will be a big year for the crypto industry in the U.S., and it may even be quite positive.
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