Warren Davidson (R-Ohio) expressed doubts about the future of cryptocurrencies in the US economy. In response, Powell affirmed the enduring presence of cryptocurrencies.
During his testimony before Congress, Chairman Jerome Powell expressed confidence in the long-term sustainability of cryptocurrencies as an investment category in the United States.
During his appearance before the House Committee on Financial Services to discuss the Federal Reserve’s Semiannual Monetary Policy Report, Powell made this statement.
During the meeting, Representative Warren Davidson (R-Ohio) raised concerns about the long-term viability of cryptocurrencies in the US economy. He mentioned that the total market value of all cryptocurrencies is approximately $1.1 trillion and asked Jerome Powell for his views on the sustainability of cryptocurrencies in the long run.
Powell acknowledged that cryptocurrencies appear to have a lasting presence, but he also pointed out that their market value has decreased in the past year.
As an intriguing observation, Nasdaq defines “staying power” as the ability to endure market exposure even during a decline in asset value. If Powell agrees that cryptocurrencies possess staying power, it indicates his recognition of their potential and positive prospects.
Rise in Regulatory Attention:
Following the crash of the FTX exchange in November, the overall value of cryptocurrencies suffered a significant decline, with the total market capitalization falling below $1 trillion. This event shook the industry and raised concerns about the security and regulation of cryptocurrency exchanges. The United States, particularly the SEC, has intensified its regulatory scrutiny in response to these developments.
Representative Davidson discussed the issue of cryptocurrency volatility during the session, attributing it largely to the existing legal uncertainties. In recent months, authorities have heightened their monitoring and exerted more pressure on the cryptocurrency industry.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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