US lawmakers provide guidance on crypto legislation and Jerome Powell says the Fed will soon release a report on digital currencies

In his confirmation hearing before members of the Senate Banking Committee, Federal Reserve Chairman Jerome Powell said the agency would publish its report on cryptocurrencies “within a few weeks.”

Remotely addressing Idaho Senator Mike Crapo from Dirksen’s Senate office building on Tuesday, Powell said the Fed’s digital currency report is not “quite where it should be,” but it will be released soon anyway.. As a reason for the delay in the report, the Fed chairman cited “changes in monetary policy”, which should deal with the policy around the possible introduction of a digital central bank currency in the US.

“It will be more of an exercise asking questions and soliciting input from the public than taking many positions on different subjects, even though we have a few positions,” said Powell. The report is really done and I hope we drop it in the next few weeks, I hate to say it again.

US lawmakers provide guidance on crypto legislation and Jerome Powell says the Fed will soon release a report on digital currencies
US lawmakers provide guidance on crypto legislation and Jerome Powell says the Fed will soon release a report on digital currencies

Powell’s testimony comes the same day that Minnesota MP Tom Emmer, indicated on Twitter that it would propose new laws related to digital currencies without giving details. It is unclear whether the next bill would aim to “fix” the definition of a broker in the Infrastructure Act, which came into force in November 2021, or some other regulatory way of promoting innovation in the crypto industry.

New legislation on digital currencies coming soon

During his tenure as Fed chair, Powell suggested that there is no rush in the US to bring a digital dollar to market, even though other countries, including China, have been pushing CBDCs. In December, he advocated stablecoins, saying they could be a “useful and efficient part of the financial system for the consumer if properly regulated”.

If he gets more than 50 votes once his nomination reaches the entire Senate, Powell would be reelected as Fed chairman for another four years. Lael Brainard will speak in a hearing in front of US lawmakers on Thursday to confirm her position as vice chairman of the Fed, replacing Richard Clarida.

At least three seats on the Federal Reserve Board of Governors are available for nominations by the US President. Joe Biden in 2022 following the departure of Clarida, who announced yesterday that he would be stepping down before his term expired on Jan. 14.. Biden is considering joining the group of seven governors, Sarah Bloom Raskin, a law professor at Duke University, alongside economists Lisa Cook and Philip Jefferson.

Cointelegraph contacted Tom Emmer’s office but received no response by the time we went to press.

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