According to Politico, Federal Reserve Chair Jerome Powell informed House Democrats that the United States requires stablecoin legislation.
In his closed-door meeting on Tuesday with Democrats from the House Financial Services Committee, he’s reported to have said that he’s glad that negotiations are “close” on stablecoin legislation, according to Politico, citing a person who was there.
He also said Congress’ approval would be required for any central bank digital currency before the Fed will move on it.
He stated, “Congress needs to authorise it if we’re going to have a CBDC,” the report added. “We aren’t advocates, but we haven’t made a decision to recommend a CBDC to Congress.” These remarks are consistent with his and other Fed officials’ prior public statements.