While China continues with its hostile policy against the cryptocurrency industry with outright bans, the United States appears to take a significantly different and more open-minded approach.
In the past 24 hours alone, Fed Chair Jerome Powell reassured the country will not prohibit the usage of digital assets, and US Congressman asked if the government should use cryptocurrencies as the new gold standard.
Fed Has No Plans to Ban Crypto
The decentralized nature of cryptocurrency has been a thorn in the sight of the world’s most populated country for years. Despite this, though, multiple projects emerged from there, and China also became the home of over 60% of BTC’s hash rate.
Yet, the authorities only intensified their hostile approach, which culminated this year. Back in May, the government reiterated old bans and came up with new ones that ultimately ousted miners away. Most recently, China’s central bank prohibited all local organizations from dealing with anything even remotely connected to crypto.
This caused disruptions in the market. At the same time, multiple prominent names urged the US to take the complete opposite stance on crypto.
And it seems this is precisely what the States plans to do, at least according to the Federal Reserve Chairman Jerome Powell. During yesterday’s House Financial Services Committee meeting, he said the government has no intentions to ban cryptocurrencies.
However, he still asserted that some digital assets, stablecoins in particular, have to be regulated.
Jerome Powell Source: BBC
This fresh, more optimistic approach undertaken by the US had an immediate positive effect on the entire market, which turned green today. Bitcoin itself is up by $2,000 in a day and touched $45,000 for the first time in a week.
Crypto The New Gold Standard?
Congressman Madison Cawthorn took the US decision not to ban cryptocurrencies a step further. Shortly after the aforementioned meeting, Rep. Cawthorn asked his hundreds of thousands of followers the following:
Why do we not use cryptocurrency as the new gold standard?
— Rep. Madison Cawthorn (@RepCawthorn) September 30, 2021
Objectively speaking, the chances of such a scenario seem quite fictional, for now at least. The US has failed to provide any conclusive and clear regulatory approach on digital assets for years, let alone accepting them as the new gold standard.
Even the perma-bull Anthony ‘Pomp’ Pompliano admitted in his weekly message to subscribers the slim chances of something like this transpiring in the US – one of the first nations to remove the gold standard decades ago.
Nevertheless, even Powell’s latest positive statement should be considered as a win for the cryptocurrency industry. And, it came just days after Pennsylvania’s Senator Pat Toomey asserted that the US should take advantage of China’s crackdown on crypto.
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Tags: China Crypto Ban Federal Reserve United States