The Fed’s governor has argued that The United States must be at the forefront of developing a central bank-issued digital currency, or CBDC, to bolster the role of the U.S. dollar as a global reserve currency. In a May 24 announcement, Federal Reserve Governor Lael Brainard asserted that leading CBDC projects could have a “significant effect” on the global financial system, urging the U.S. to ensure it plays a leading role in the burgeoning CBDC ecosystem: “Given the potential for CBDCs to gain prominence in cross-border payments and the reserve currency role of the dollar, it is vital for the …

The founder and CEO of Avanti Financial, Caitlin Long says the “U.S. crypto regulatory crackdown” has begun, but emphasized it’s not a “Bitcoin ban.” She said she was optimistic that the forthcoming regulations would simply bring crypto laws into line with standard financial rules around taxes and compliance. 1/ IT'S CLEAR a US #crypto regulatory crackdown is starting but I'm optimistic bc most of the major players/agencies have spoken already & the policy is taking shape: it's "pay taxes, comply w/ laws & don't take shortcuts, & we'll enable the innovation." It's NOT a "#bitcoin ban" — Caitlin Long (@CaitlinLong_) …

Federal Reserve chair Jerome Powell said the government body is moving forward with research to implement a central bank digital currency. In an announcement from the Fed today, Powell said the Federal Reserve Board would be issuing a discussion paper sometime this summer, calling for the U.S. public to comment “on issues related to payments, financial inclusion, data privacy, and information security.” While the Fed chair said crypto was not a “convenient way to make payments” given its volatility, he was seemingly more open to stablecoins and a central bank digital currency, or CBDC. “Our key focus is on whether …

Major financial regulators in the United States are considering establishing an interagency group dedicated solely to cryptocurrency matters. Michael Hsu, the new head of the Office of the Comptroller of the Currency, announced that the agency has been in talks with the U.S. Federal Reserve and the Federal Deposit Insurance Corporation about setting up an “interagency policy sprint team” focused “just on crypto.” At a virtual hearing of the House Financial Services Committee on Wednesday, the OCC head said that he discussed the initiative with Fed vice chairman of supervision Randal Quarles and FDIC chairman Jelena McWilliams. “This is a …

United States regulators and lawmakers may be revisiting legislation for crypto assets following a wild week of trading that has seen Bitcoin (BTC) prices plunge by $15,000 at one point. According to a Bloomberg report on Tuesday, Washington’s financial regulators are still unsure of how to regulate the volatile markets. As banking regulators testified on Capitol Hill on Wednesday, Federal Reserve Vice Chairman of Supervision Randal Quarles spoke of a lack of sufficient regulations, stating: “We are in the process at the Fed of studying the various ways to address this issue.” He added that federal agencies need time to …

Both Atlanta Federal Reserve President Raphael Bostic and St. Louis Federal Reserve President James Bullard seem to be unconcerned about the recent crypto bloodbath’s impact on the U.S. economy. According to a Reuters report, Bostic said the volatility in the crypto market is “not at a scale” to have systemic financial implications for the Fed. He added that such events like the one this morning — which saw the price of Bitcoin (BTC) dip to $30,000 — did not play a large role in how he considered Fed policy. However, he predicted “a fair amount” of volatility through the summer. …

Facebook-backed digital currency project the Diem Association has partnered with cryptocurrency-friendly bank Silvergate to launch a stablecoin pegged to the United States dollar. Diem announced Wednesday a new model of its upcoming stablecoin, relocating its main operations from Switzerland to the United States and withdrawing its application for a payment system license from the Swiss Financial Markets Authority. The association, which comprises 26 financial firms including Nasdaq-listed cryptocurrency exchange Coinbase, is now planning to move forward with its USD stablecoin plans through Silvergate Bank, which is set to be the issuer of the Diem USD and will manage the Diem …

Billionaire hedge fund manager Stanley Druckenmiller has forecast the possibility of a crypto-derived ledger system overtaking the U.S. dollar as a global reserve currency. The hedge fund boss noted that if there were to be a U.S. dollar replacement it “would be some kind of ledger system invented by some kids from MIT or Stanford or some other engineering school that hasn't even happened yet, that can replace the dollar worldwide.” He made the comments in an interview with CNBC’s Squawk Box. Druckenmiller noted that crypto is often promoted as a hedge against inflation, which has become more relevant of …

Kevin McCarthy, the minority leader in the United States House of Representatives, hinted that both the current secretary of the treasury and the chair of the Federal Reserve may need to reevaluate their positions on crypto. Speaking on CNBC's Squawk Box this morning, host Joe Kernen asked the Republican lawmaker whether either Treasury Secretary Janet Yellen or Fed Chair Jerome Powell had a “good understand of digital currencies or Bitcoin.” In regards to Bitcoin (BTC), McCarthy claimed that both the officials had “tried to ignore it to make it go away,” while urging those in government to see the potential …

Bitcoin (BTC) fell to its lowest level since March 8 on Thursday as U.S. dollar strength added to selling pressure near $60,000. BTC price saved from $40,000 zone Data from Cointelegraph Markets Pro and Tradingview showed BTC/USD testing $50,000 for the first time since sealing the level as support earlier this month. After seeing rejection at $60,000, Bitcoin had struggled to maintain higher levels through the week, and an overnight sell-off finally saw mid-$50,000 support evaporate. The largest cryptocurrency shed almost 10% on the day, with buyers nonetheless keeping it out of the $40,000-$50,000 corridor at the time of writing. …

While Bitcoin (BTC) is too volatile to be money and is "backed by nothing," it could be a "substitute for gold," said the chair of the United States Federal Reserve. Speaking at an event hosted by the Bank for International Settlements, or BIS, on Monday, Jerome Powell delivered frank comments in response to a question on cryptocurrency. Powell takes issue with Bitcoin's backing When asked whether he thought Bitcoin and other cryptocurrencies posed a threat to financial stability, Powell wheeled out familiar arguments that have long come from legacy finance figures. "Crypto assets — we call them 'crypto assets' — …

Throughout the middle of March, many Americans received stimulus checks from the government, and while the payments — $1,400 for every U.S. citizen earning less than $80,000 annually — will be a blessing for millions in desperate economic straits as a result of the COVID-19 crisis, it has raised again the specter of inflation. And as with many other things, this too has a Bitcoin (BTC) angle. On March 15, Galaxy Digital CEO Mike Novogratz proposed on NBC’s Squawk Box a new role for Bitcoin in light of recent stimulus measures — as “a report card for how citizens think …