According to Jerome Powell, this is caused by the high volatility of digital assets

Fed chief said the agency’s increased attention to the cryptocurrency market

23.06.2022 - 10:50

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1 min

What’s new? The US Federal Reserve System (Fed) is keeping a close eye on the situation in the cryptocurrency market amid high volatility in digital asset rates, the agency’s chief Jerome Powell said in a report to Congress. In his opinion, cryptocurrencies do not have a strong impact on the country’s macroeconomy, but this area needs the introduction of a clearer regulatory framework.

The full version of the report

What other statements have been made? The Fed chief stressed that many crypto assets are similar to products that exist in the capital market and the banking system, but the regulatory approach is not the same for them. The relevant government agencies should fix this, Powell believes.

In early June, Christopher Waller, a member of the Fed Board of Governors, announced the need to regulate the crypto market for retail investors. In his view, if it was only about experienced investors who are comfortable with risk, then regulation might not have been necessary.

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