Recently the Chinese centrale bank announced that they were taking steps to stop trading cryptocurrencies. For some time now, the Chinese government has had a hostile stance towards the world of crypto and this was just the latest step in a now long trend.
Jerome Powell
The developments in China sparked a lot of discussion elsewhere in the world. Likewise in the United States. US crypto investors were very concerned about the position of the US government vis-à-vis crypto.
Many politicians in the United States said they hoped the US government would take the opposite stance from China. So not banning crypto, but embracing this new innovative sector.
Jerome Powell, the chairman and president of the US Federal Reserve, has since allayed a lot of investor fears. He recently stated during a meeting of the House of Representatives that the US central bank didn’t intend to to ban the trading of cryptocurrencies.
So it seems that Jerome Powell and the Federal Reserve have somewhat heeded the many calls not to follow China and take drastic measures.
However, this does not mean that further regulation of the crypto markets will not follow. Powell indicated that in particular stablecoins will become the subject of thorough regulation as soon as possible. The US government has long had their doubts about stablecoins and are the tokens as a potential danger to stability of the crypto economy.
Crypto the new Gold standard?
An American member of the House of Representatives, Madison Cawthorne, has a very radical position. He asks on Twitter why the United States will not use cryptocurrencies as the new gold standard.
Why do we not use cryptocurrency as the new gold standard?
— Rep. Madison Cawthorn (@RepCawthorn) September 30, 2021
Of course, this is still somewhat far-fetched at the moment. Nevertheless, Cawthorne is a member of the US government and holds concrete political power. Who knows what the possibilities will be in a while.
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