The President of the Federal Reserve, Jerome Powell, has conveyed to House Democrats the importance of the United States having specific legislation to regulate stablecoins, according to a report by Politico. During a closed-door meeting on Tuesday with Democratic members of the House Financial Services Committee, Powell indicated that negotiations regarding stablecoin legislation are nearing a conclusion.
Prerequisites for a CBDC in the USA
Powell also emphasized that congressional approval would be necessary before the Federal Reserve can take action on any central bank digital currency (CBDC).
If we are to have a CBDC, Congress must authorize it.
While the Federal Reserve is not an active proponent of the idea, no formal decision recommending a CBDC to Congress has been made at this stage.
