United States Federal Reserve Chair Jerome Powell said on Thursday that stablecoins should be regulated at the federal level.
There are a lot of regulatory agencies that could get involved in the process, such as the Securities and Exchange Commission, banking regulators or the Fed itself, Powell said in a hearing before the House of Representatives. A regulatory framework on digital finance is needed to "protect the public," he noted, adding that it is important that lawmakers finalize legislation on the matter "quickly" considering the instability of the companies in the sector.
A potential digital dollar should not be a private stablecoin but created by the Fed as it could be used by the American public in payments, he underlined. However, the central bank still does not know if the US needs a digital dollar as such, Powell also noted.
