During a semiannual hearing on monetary policy conducted by the Republican-led House Financial Services Committee, Federal Reserve Chair Jerome Powell emphasized the need for a robust federal role in regulating stablecoins, a significant component of the cryptocurrency market that lawmakers are currently working on establishing rules for.

Powell also expressed his belief in the enduring nature of cryptocurrencies, including Bitcoin.

Powell’s statements were made on Capitol Hill in response to a question from Maxine Waters (D-CA) regarding stablecoins, Decrypt reported.

He highlighted the importance of strong federal oversight for this technology, which involves tokens tied to the value of a sovereign currency, such as the U.S. dollar, and issued by private companies.

Written by staff