Powell Says Cryptocurrencies Aren't Big Enough to Pose a Threat

(Bloomberg) -- Federal Reserve Chairman Jerome Powell made it clear that the explosive growth in digital money isn’t very high on his list of concerns.

The estimated $295 billion cryptocurrency market isn’t big enough to pose a threat, and the U.S. central bank isn’t looking to regulate it, Powell said during testimony Wednesday before the the House Financial Services Committee.

The Fed doesn’t have jurisdiction over cryptocurrencies, and isn’t seeking to provide oversight, he said. Federal agencies like the Securities and Exchange Commission and Commodity Futures Trading Commission, as well as state authorities already oversee many crypto-related businesses, and have shuttered some that have operated illegally.

The Fed has said in the past that it’s monitoring cryptocurrencies as they evolve.

©2018 Bloomberg L.P.