The value of prominent cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) increased after US Federal Reserve Chairman Jerome Powell made a crucial speech recognizing the durability of cryptocurrencies in the US economy. In his hearing before the House Financial Services Committee, Powell made the comments, in which he reiterated that cryptocurrencies have "staying power" in the economy. Additionally, he acknowledged stablecoins as a type of currency and highlighted the demand for strict government supervision of their regulation. Gary Gensler, the chairman of the SEC, views most tokens, with the exception of Bitcoin, as securities subject to regulation. Powell's remarks deviated from Gensler's position.
With Bitcoin topping $30,000 and rising to a two-month high, the market reacted favorably to Powell's remarks. Companies like BlackRock and Fidelity applied for Bitcoin ETFs, demonstrating the growing interest of institutional investors. Powell's support for cryptocurrencies and stablecoins shows that they have the potential to be extremely important to the US economy.
Industry-wide reverberations caused by Jerome Powell have reignited enthusiasm and hope. Powell's acknowledgment of cryptocurrencies' resilience in the US economy is a substantial endorsement for the virtual asset class. His statement before the House Financial Services Committee revealed that he is becoming more accepting of and aware of the possible effects that cryptocurrencies might have on the financial system.
In Summary
Powell's assertion that stablecoins are viewed as a form of money highlights the demand for regulatory clarity and control in this quickly developing industry. Powell advocates for a significant federal role in the future development of stablecoins by recognizing them as a category of money and highlighting the significance of preserving their legitimacy and stability.
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