Powell Says Cryptocurrencies Aren't Big Enough to Pose a Threat
The explosive growth in digital money isn’t very high on Powell’s list of concerns.
(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.
To contact the reporter on this story: Olga Kharif in Portland at okharif@bloomberg.net
To contact the editors responsible for this story: Nick Turner at nturner7@bloomberg.net, ;Jeremy Herron at jherron8@bloomberg.net, Dave Liedtka, Andrew Dunn
©2018 Bloomberg L.P.