US Federal Reserve Chairman Jerome Powell said the US has no plans to ban bitcoins and cryptocurrencies.
On September 30, during the hearings of the Treasury Department and the US Federal Reserve on the response to the pandemic, Federal Reserve Chairman Jerome Powell said that the US authorities were not considering the possibility of banning bitcoins and other cryptocurrencies. Powell made this statement in response to a question from Rep. Ted Budd about the possible release of a US digital currency and the impact of bitcoin, other cryptocurrencies and stablecoins on the economy.
“So Mr. Chairman is it your intention to ban or limit the use of cryptocurrencies like we’re seeing in China?” Budd asked.
“No intention to ban them,” Powell replied, adding that stablecoins require an appropriate regulatory framework.
Powell compared stablecoins to bank deposits and monetary-market funds, which are now outside the regulatory perimeter and require regulation.
Powell’s announcement had a stimulating effect on the crypto market. By Thursday evening, bitcoin was up 9%, surpassing $47,000 for the first time in two weeks. Following bitcoin, quotes of other cryptocurrencies went up. Thus, ETH, the second largest cryptocurrency by capitalization, rose in price by 8.8% to $3232. Shares of cryptocurrency exchange Coinbase gained more than 3% on Nasdaq.