After months of silence on the matter, Federal Reserve chairwoman Janet Yellen has stated that the US central bank does not have the authority to regulate bitcoin.
Yellen was appointed as chair of the Federal Reserve last October after she was nominated to replace Ben Bernanke.
During an address to the Senate Banking Committee on 27th February, the top US banking official, said:
In her response, Yellen commented broadly on a score of issues including the impact of recent weather on US economic output, ongoing turmoil in the Ukraine and the new technologies that are more broadly impacting payments.
It was on the latter subject that the topic of bitcoin was introduced, with Yellen noting that such developments are "taking place outside the banking industry".
Notably, the remarks came in response to a question about bitcoin regulation by US Senator Joe Manchin, a noted critic of bitcoin.
Yellen continued, saying that FinCEN has indicated that current money laundering statutes are "adequate to meet enforcement needs".
Manchin later asked whether Yellen believed the US to be "behind the curve" in regards to regulation, a nod to his previously stated belief that the US should follow the lead of countries like China and Thailand in banning bitcoin.
She ended her response by stating that the Federal Reserve is looking into the matter.
The statement notably comes at a time when many US state regulators are looking for guidance on how to put controls or safeguards on the bitcoin industry.
Image credit: Flickr
CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.