Connect with us

Crypto regulation

Fed Chair Powell: We’re Not Seeing Significant Macroeconomic Implications From Crypto Sell-Off

Published

on

Fed Chair Powell: We’re Not Seeing Significant Macroeconomic Implications From Crypto Sell-Off

Federal Reserve Chairman Jerome Powell says the central bank is “not really seeing significant macroeconomic implications” from crypto’s volatility. The Fed chair stressed that there is a need for a better crypto regulatory framework.

Fed Chair Powell Says Crypto Needs Better Regulation

Federal Reserve Chairman Jerome Powell testified before the Senate Committee on Banking, Housing, and Urban Affairs on “the semiannual monetary policy report to congress” Wednesday.

Senator Kyrsten Sinema (D-AZ) asked him whether the Fed has been tracking crypto activities given the recent market volatility, and what implications crypto has on the broader economic outlook and monetary policy.

Advertisement

“We are tracking those events very carefully, of course,” Powell replied, elaborating:

[We are] not really seeing significant macroeconomic implications, so far.

“The principal implication is really what we’ve been saying, and others have been saying for some time, which is that in this very innovative new space, really, there is a need for a better regulatory framework,” he emphasized.

Powell continued:

The same activity should have the same regulation no matter where it appears and that isn’t the case right now.

In March, the Fed chair said: “Our existing regulatory frameworks were not built with a digital world in mind … Stablecoins, central bank digital currencies, and digital finance more generally, will require changes to existing laws and regulation or even entirely new rules and frameworks.”

Powell also told the Senate banking committee on Wednesday that the central bank is determined to bring down inflation which he believes the Fed can make happen. “At the Fed, we understand the hardship high inflation is causing. We are strongly committed to bringing inflation back down, and we are moving expeditiously to do so,” he said.

Advertisement

Regarding the U.S. economy possibly sliding into a recession, he stressed: “It’s not our intended outcome at all, but it’s certainly a possibility, and frankly the events of the last few months around the world have made it more difficult for us to achieve what we want, which is 2% inflation and still a strong labor market.”

What do you think about Fed Chair Powell’s comments? Let us know in the comments section below.

Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

Advertisement

Advertisement

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Advertisement

Abdellatif Jouahri

Report: Morocco’s Central Bank To Unveil Crypto Regulation Bill Soon

Published

on

Report: Morocco’s Central Bank To Unveil Crypto Regulation Bill Soon

The Moroccan central bank is presently working on a cryptocurrency regulation framework bill and according to the bank’s governor, Abdellatif Jouahri, this is set to be introduced soon. The regulatory framework being worked on will result in Morocco’s money laundering and anti-terrorism financing regulations being upgraded.

Crypto Regulation Best Practices

A Moroccan central bank committee is working to put in place an appropriate regulatory framework for cryptocurrencies, Bank Al-Maghrib (BAM) governor Abdellatif Jouahri has reportedly said. The governor also revealed his institution has engaged both the International Monetary Fund (IMF) and the World Bank over the benchmarks that will be used.

Before Jouhari’s latest remarks, Bitcoin.com News reported in March 2022 that the Moroccan central bank was in talks with two global financial institutions as well as with the central banks of France, Sweden, and Switzerland. At the time, The talks, according to the central bank, were focused on what would be the crypto regulation best practices.

Advertisement

Balancing Innovation and Consumer Protection

Meanwhile, a Mapnews report stated BAM’s mooted regulatory framework for cryptocurrencies is expected to strike a balance between the need to foster innovation and the welfare of consumers.

In addition to addressing issues around the regulation of cryptocurrencies, Jouhari hinted that the framework being worked on will also see Morocco’s money laundering and anti-terrorism financing regulations being upgraded.

While the central bank has in the past conceded that Moroccans will likely adopt cryptocurrencies, BAM, alongside the Ministry of Finance and the Moroccan Capital Market Authority, has repeatedly warned of the risks that are associated with the use of cryptocurrencies.

What are your thoughts on this story? Let us know what you think in the comments section below.

Advertisement
Terence Zimwara

Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.

Advertisement

Image Credits: Shutterstock, Pixabay, Wiki Commons

Advertisement

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Continue Reading

Bank of Canada

Bank Of Canada’s Official: Crypto Needs Regulation Before It Becomes ‘a Lot Larger’

Published

on

Bank Of Canada’s Official: Crypto Needs Regulation Before It Becomes ‘a Lot Larger’

Bank of Canada’s senior deputy governor says the central bank does not want to wait until crypto “gets a lot larger” before it brings regulatory controls in place. “This is an area that is still small, but it’s growing really rapidly,” the official said.

Bank of Canada’s Official Stresses the Importance of Crypto Regulation

Bank of Canada Senior Deputy Governor Carolyn Rogers talked about cryptocurrency regulation in an interview with Reuters Thursday.

“This is an area that is still small, but it’s growing really rapidly. And it is largely unregulated,” she explained, adding:

Advertisement

We don’t want to wait until it gets a lot larger before we bring regulatory controls in place.

The total crypto market capitalization has fallen to below $1 trillion following Monday’s sell-off. According to data from Bitcoin.com Markets, the total market cap of the entire crypto market is approximately $918 billion at the time of writing.

According to Canada’s central bank, the share of Canadians who own bitcoin more than doubled to 13% in 2021 from 5% in 2020.

“Like any asset that’s jumping around in price, people see an opportunity for quick gains,” Rogers added, elaborating:

Our concern is they may not understand the risks. They may not even understand that it’s not a regulated area.

The senior deputy governor of the Bank of Canada emphasized that the crypto industry needs to be regulated. “These are somewhat like banking assets, somewhat like capital markets,” she described.

However, Rogers pointed out that there are challenges, stating:

Advertisement

One of the challenges is to figure out how do they fit in the current regime, and if they don’t fit, how do we adjust the regime so that they will fit.

What do you think about the comments by Bank of Canada’s senior deputy governor about crypto? Let us know in the comments section below.

Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

Advertisement

Advertisement

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Advertisement
Continue Reading

Bitcoin

CFTC may become main regulator for crypto industry

Published

on

CFTC may become main regulator for crypto industry

CFTC may become main regulator for crypto industry Oluwapelumi Adejumo · 12 hours ago · 2 min read

U.S.› Regulation

Several crypto exchanges have revealed their preference for CFTC to be the major regulator of the crypto space with FTX Bankman-Fried lobbying the US congress for the commission.

Advertisement

2 min read

Updated: June 9, 2022 at 3:31 pm

Cover art/illustration via CryptoSlate

👋 Want to work with us? CryptoSlate is hiring for a handful of positions!
Advertisement

The Commodity Futures Trading Commission (CFTC) is garnering support to be the primary regulator for the crypto industry amongst stakeholders in the crypto industry and US lawmakers, Commissioner Summer Mersinger said during the Reuters Commodities Trading USA conference in Houston.

The CFTC commissioner continued that the commission is also reviewing its potential roles in the crypto industry, especially in areas such as spot-market crypto trading. However, the reviews are still at the preliminary stage.

In his words,

We are still a strong regulator, but our registrants have a lot of flexibility. They have been very interested in that approach versus the top-down way of some other financial regulators.

Several crypto exchanges have revealed their preference for the CFTC to be the principal regulator of the crypto space. The CEO and founder of FTX, Sam Bankman-Fried, has been lobbying the US Congress to give the CFTC a bigger role in overseeing the industry.

Meanwhile, a newly proposed bipartisan bill by Senators Kirsten Gillibrand and Cynthia Lummis wants to regard cryptocurrencies as commodities that should be placed under the purview of the CFTC.

Advertisement

Who should regulate the crypto industry? SEC or CFTC?

With the newly proposed bill pushing CFTC to the forefront of crypto regulations, experts in the industry have been divided over who should regulate the industry, with some arguing in favor of the Securities and Exchange Commission (SEC) while others push for CFTC.

The common perception is that the SEC has the most potential to oversee the crypto space because it has been at the forefront of regulating it.

Gives CFTC, which is very pro crypto, control over regulating all crypto deemed to be commodities (BTC, ETH, and likely half of all coins). This is good and big. The SEC has hurt crypto in the USA. BUT, It also means many coins will be securities regulated by the SEC.

— Lark Davis (@TheCryptoLark) June 8, 2022

According to Lark Davis, if CFTC becomes the official regulator for the crypto industry, this is “good and big” as “The SEC has hurt crypto in the USA.”

Katherine Kirkpatrick, the General Counsel for Maple Finance, says CFTC taking over the regulation of the industry is good and bad.

Advertisement

1/ After carefully reviewing the L-G bill, a few thoughts on its application to #DeFI. 1) CFTC auth. is good & bad – good to cede authority to less aggressive SEC, bad bc CFTC is under-funded and under-resourced, so query how the CFTC is going to keep up with rapid development.

— Katherine Kirkpatrick (@kkirkbos) June 8, 2022

Per her statement, it is bad because the CFTC is under-funded and under-resourced, so she wonders how the commission will remain atop the rapid development in crypto and DeFi.

On the other hand, Mark Hays, a senior policy analyst at Americans for Financial Reform, says the SEC should be responsible for overseeing the industry because

Most of the cryptocurrency activity out there walks, talks and acts like a security.

Advertisement
Continue Reading

Trending

Get our daily News updatesSignup to get instant updates straight to your email