Fed Chair Powell Told House Democrats U.S. Needs Stablecoin Bill: Politico

Federal Reserve Chair Jerome Powell told House Democrats that the U.S. needs a legislative framework for stablecoins, Politico reported.

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.

“If we’re going to have a CBDC, Congress needs to authorize it,” he said, according to the report. “We aren’t advocates, but we haven’t made a decision to recommend a CBDC to Congress.”

Those comments are in line with what he and other Fed officials have previously said publicly.