Powell Says Fed Will Release Crypto Report 'In Weeks'

During a Senate deliberation hearing on Tuesday, Federal Reserve Chairman Jerome Powell said that a CBDC would not necessarily lead to a U.S. ban on private stablecoins.

Federal Reserve Chairman Jerome Powell told a Senate deliberation hearing on Tuesday that the much-anticipated Federal Reserve report on cryptocurrencies and central bank digital currencies (CBDCs) — originally slated for September last year — will be released “within a few weeks.” .

Powell, nominated by President Biden for re-election as Fed chair, was asked by Senator Mike Crapo (R-Idaho) about the timing of the crypto report during a Senate Banking Committee deliberation hearing.

"We haven't quite achieved our goals," Powell said of the delay in the report. "But it's taking shape now and we'll announce it in a few weeks."

Powell's testimony echoed similar remarks he made at a Senate hearing in November, when he promised to release a report "in the coming weeks." Two months ago, he said the report would be released "soon". And in July last year, he promised the report would be released by September.

The report is expected to focus on CBDCs, a subject being studied by the Federal Reserve and a hot topic of discussion at congressional hearings where Powell was called as a witness.

During Tuesday’s hearing, Powell was asked by Committee Chief Sen. Pat Toomey (R-Pa.) whether a CBDC could not compete with “properly regulated, but privately issued stablecoins” if Congress gave the Fed the power to pursue a digital currency coexist.

"No, not at all," Powell replied.

Toomey also expressed doubts about the Fed's power as the retail bank for Americans.

“There is absolutely nothing in the Fed’s history, experience, expertise and capabilities that would make the Fed a retail bank, in my opinion. Do you think I am right?” Toomey asked.

Powell agreed: "I think you're right."