Jay Powell who is part of the House of representatives for Georgia is tipped to be the next head of the Federal reserve, replacing Janet Yellen who is a supporter of blockchain technology. However Jay Powell who was initially seen as a Bitcoin critic who had stated cryptocurrencies are tools that facilitate crimes and are associated with money laundering and criminal enterprises. However recently it appears Jay Powell has softened his approach when it comes to dealing with cryptocurrencies and the Bitcoin with Jay Powell stating that he is neither broadly opposed or supportive of the Bitcoin and despite looking into a FED digital currency, he is cautious about it as he believes the implications of such technology will become apparent in the long term future. But this is the entire point of investing in the Bitcoin now, being able to profit from a currency that may still be under priced due to it still not reaching its full potential.
How can the FED impact the Bitcoin?
With Jay Powell taking over from Janet Yellen, one can expect a shift in policy with regards to cryptocurrencies and the Bitcoin, however the shift in policy may not be as significant as many pundits may have predicted it to be. With Jay Powell echoing similar policy as Janet Yellen with Powell stating he has nothing against the Bitcoin and the only concern he has is with criminals using and abusing the coin. Thus indicating Powell does not wish to place unnecessary regulations that may hamper cryptocurrency innovation or impact the Bitcoin trade. It appears the regulations that the U.S is planning on announcing will be in place to simply target criminal entities.
So how exactly can the FED impact the Bitcoin itself if it does plan to regulate the coin? The Federal reserve is in charge of overseeing the banking and financial systems to ensure the country runs in a smooth manner, which includes overseeing the use and investment in cryptocurrencies. The FED has the power to impose direct regulations on the Bitcoin or cryptocurrencies if it deems them as being bad for the economy or a fraud. It appears Powell does not see the Bitcoin as being either one of them and has stated he is neutral in terms of dealing with the Bitcoin. So thus it is highly unlikely we will regulations that we saw in China placed on the Bitcoin in the U.S.
In conclusion, despite numerous countries announcing regulations against the Bitcoin including South Korea, it appears the regulations are not placed to disrupt the Bitcoin but to tackle crime. By placing such regulations it enables the community to gain clarity in terms of Governments status and position with regards to the Bitcoin, something many stakeholders and potential buyers have been yearning for.