Chairman of the Federal Reserve Jerome Powell has come out to say that the United States government has no intention of mimicking China’s crackdown on cryptocurrencies.

At a hearing on Thursday by the House Committee on Financial Services, Powell reiterated the government’s position. Responding to Ted Budd, a conservative North Carolina Republican asking whether the Fed wanted to restrict or ban the use of digital currency, Powell confirmed the government’s stance.

But, the central banker said that all cryptocurrencies, especially stablecoins, need to have regulation.

They are not intended to be banned, however, as stablecoins can also act like money-market funds and bank deposits. However, some of their regulatory boundaries are still in place. It’s appropriate that they be regulated.

Recall that the People’s Bank of China classified all crypto-related activities as illegal just last week.

With the rise in popularity of digital assets, people are eager to learn how government responds. Tech entrepreneur Elon Musk recently advised the government to give the new asset class some breathing space – “I would say, do nothing. Just let it fly.”

The Federal Reserve is currently evaluating the benefits and costs of creating a central bank digital currency, and a report about the “digital dollar” is expected to be published in the nearest future.

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