Federal Reserve Chairman Jerome Powell assured lawmakers on Thursday that he does not intend to move toward banning cryptocurrency in the United States.

He made the comment during a committee hearing in response to a question from Rep. Ted Budd (R-NC), who asked Powell, “Is it your intention to ban or limit the use of cryptocurrencies, like we’re seeing in China?”

“No,” Powell replied, before going on a brief tangent about digital currencies promulgated by central banks and prompting Budd  to interject, “But no intention to ban?”

“No intention to ban them, but they’re — stablecoins are like money market funds, they’re like bank deposits,” Powell said. “But they’re to some extent outside the regulatory perimeter, and it’s appropriate that they be regulated.”

Here’s the money quote #FederalReserve Chair #JeromePowell very clear that he has no intention to BAN #cryptocurrencies but they will regulate #bitcoin #dogecoin #Ethereum #crypto pic.twitter.com/OAzJbh1pjk

— Susan Li (@SusanLiTV) September 30, 2021

Stablecoins, such as Tether (USDT) and USD Coin (USDC), are digital currencies pegged to the price of the dollar or other real-world currencies such that their value does not change.

Powell said last week the Federal Reserve may seek to implement its own Central Bank Digital Currency (CBDC),which would be akin to a stablecoin. The Boston Fed and the Massachusetts Institute of Technology are expected to release a joint research paper exploring the issue before the end of the year.

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