Fed Chairman Powell reaffirms need for stablecoin legislation: ”Federal regulation is needed”

Federal Reserve Chairman Jerome Powell reiterated the need for legislation on stablecoins.
"Stablecoins can have pretty broad appeal," Powell said at a panel discussion at the Economic Club of Chicago on the 16th (local time).
"Digital products" must include consumer protection features, and stablecoins do indeed provide a case for widespread consumer use," he said.
He specifically mentioned the period from 2022 to 2023 when the industry was in a slump due to a series of cryptocurrency bankruptcies and frauds, saying, "During that period, the Fed worked with Congress to
"We tried to create a legal framework for Bitcoin, but we were unsuccessful," he said. "But now the atmosphere is changing, the field has entered the mainstream, and there is a standing ovation in Congress."
"Currently, there is no legal framework regulating stablecoins, so new legislation is needed," Powell said.
This is not the first time that Chairman Powell has made such a statement. In June 2023, he also stated at a hearing of the US House of Representatives Financial Services Committee that "stablecoins are a form of currency" and that "strong
"We need proper federal regulation," he said.