Federal Reserve Chairman, Jerome Powell, testifying before the House Financial Services Committee said that the US authorities should pay more attention to cryptocurrency regulations. Powell particularly noted that recent events in Ukraine emphasize a need to prevent sanctioned individuals and companies from using cryptocurrency to fight sanctions pressure.
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"We have this burgeoning industry which has many parts to it, and there is not in place the kind of regulatory framework that needs to be there."
He also hinted that the US would try to fight inflation by raising rates later this year. Although no timetable was revealed, he added that the situation in the Ukraine may have changed the projections.
In February, the Federal Reserve released a report examining the threats and impact of stablecoins on the US monetary policy and credit system. The researchers have pointed out the "safe haven currency during periods of crypto market distress" and the risks that may arise under the conditions of their mass conversion to fiat money. Specialists have recommended conducting an audit and establishing requirements for liquidity and quality of reserves in order to mitigate risks.
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