The United States should not restrict cryptoasset transactions and should follow an opposite path to that of China. According to a recent statement by US Federal Reserve Bank President Jerome Powell, the country should not ban this market.
Powell spoke in favor of cryptoassets when asked if the United States would adopt the same position as China. The question came during a meeting in the US Senate.
Although the US FED president declared no intention to ban cryptoassets in the United States, he argued that stablecoins should be regulated.
“Because they represent the same function as bank deposits, stablecoins need to obey the same regulatory principle”, argues Jerome Powell. Stablecoins are cryptoassets that have the price pegged to another asset, usually a fiat currency.
China bans cryptoassets
Before Jerome Powell’s statement in the U.S. Senate, the People’s Bank of China issued a statement restricting cryptoasset transactions in the country.
However, this is not the first time that China has banned this type of transaction. Since 2014, the country has issued statements declaring restrictions on the market, including mining activity.
By stating the intention not to ban cryptoassets, the FED president presented a positive speech in the face of the disruptive financial market. In addition to the United States, Brazil has the intention to regulate cryptocurrencies and recently passed a bill that may result in regulation for the market.