Faced with members of the Senatoric Banking Banking Committee concerning the concerns about the “debannage” trend distressing the cryptography industry, the president of the federal reserve Jerome Powell said that he was also concerned about this and has already changed Fed internal surveillance policies.
“I too am disturbed by the quantity of these reports,” Powell said in a routine testimony to the senatorial banking committee on Tuesday. He proposed that “a theory is that banks are simply very opposite to the risk” concerning the money laundering rules and aggressive supervision under which they do not want to accommodate customers who can extend their requests for conformity.
“We are determined to take a look at this,” said Powell, who added that he had been “struck by the growing number of cases of what seems to be uninformed”.
Republican legislators and new financial surveillance dogs appointed by President Donald Trump devoted a special examination to the so-called debannage which, according to them, was encouraged by the banking agencies of the previous administration, in particular the Fed, the Federal Deposit Insurance Corp. and the office of the currency controller.
Powell also thanked the Senator of Crypto-Advocat Cynthia Lummis for having increased during a recent debannage audience that the Fed has a policy for directing a more important surveillance examination on bankers who engage in a speech or an activity controversial. He said that politics was deleted from the internal manual he came from.
Although Crypto surveillance was not a central subject at Powell’s audience on Tuesday, some of the major industry problems were raised, including stablescoins and digital currencies of the Central Bank (CBDC).
Powell said Fed supports new regulatory efforts around Stablecoins – tokens designed to maintain regular value by being set to assets such as the US dollar.
“Stablecoins can have a big future with consumers and businesses,” said Powell. “We cannot know it now, but it is important for the development of stablescoins – in a safe and healthy way that protects consumers and savers and all – that there is a regulatory framework.”
The president of the American central bank also gave a clear response to his intentions concerning CBDC – a nebulous threat of a digital dollar which had long concerned cryptography companies, although no American proposal has never really developed. When he was asked if he agrees that he never launched a CBDC, Powell simply replied: “Yes”.
The possibility of corresponding to Chinese and European experiences with CBDCs had already become further in the United States during the election of Trump and majorities of Congress which are strongly opposed to such an effort.
Powell will speak on an audience in the House of Representatives in the United States on Wednesday. And Crypto was to be the subject presented Tuesday afternoon during a hearing at the Chamber’s Financial Services Committee.
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