As China continues its hostile policy against the cryptocurrency industry with outright bans, the United States appears to be taking 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.
The Fed does not intend to ban crypto
The decentralized nature of cryptocurrency has been a thorn in the side of the world’s most populous 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 have 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. More recently, the central bank of China banned all local organizations from dealing with anything, even remotely, connected to crypto.
This caused disruptions in the market. At the same time, several prominent names have urged the United States to take a completely 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. At yesterday’s House Financial Services Committee meeting, he said the government has no plans to ban cryptocurrencies.
However, he still asserted that some digital assets, stablecoins in particular, have to be regulated.
This new, more optimistic approach taken by the United States had an immediate positive effect on the entire market, which has 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 made the US decision not to ban cryptocurrencies any further. Shortly after the aforementioned meeting, Rep. Cawthorn asked his hundreds of thousands of followers the following:
Objectively speaking, the chances of such a scenario seem pretty fictitious, 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 permanent bull Anthony ‘Pomp’ Pompliano admitted in his weekly message to subscribers the slim chances of something like this happening in the United States – 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 Senator Pat Toomey asserted that the United States should profit from China’s crackdown on crypto.
