Federal Reserve chairman Jerome H. Powell is scheduled to participate in the open session, which is set to take place on March 7.
As the market awaits the FED’s announcement on their plan for interest rate hikes for the remainder of the year, Powell’s remarks regarding the crypto market could also be a significant factor.
Following his statements in September 2022 about the importance of improving the regulation of cryptocurrencies, the Fed Chair’s recent comments on the matter could hold considerable weight.
The upcoming hearing is of great significance, especially in light of the recent regulatory enforcement actions taken by the U.S. Securities and Exchange Commission (SEC) against the crypto industry.
Crypto companies are finding it increasingly challenging to conduct transactions linked to the USD due to the unwillingness of their U.S. banking partners. Furthermore, the lack of regulatory clarity in other areas poses significant obstacles for the industry.
Hearing to address cryptocurrencies
Senator Bill Hagerty has announced that he will raise the topic of cryptocurrencies during the upcoming hearing on The Semiannual Monetary Policy Report to Congress.
The hearing on banking, housing, and urban affairs is expected to focus on Jerome Powell and the central bank’s stance on the U.S. economy.
The key issue will be the Fed’s plans to balance controlling inflation and to raise interest rates. Recent trends suggest that the market pays close attention to Powell’s speeches after FOMC meetings, as they significantly impact the prices of cryptocurrencies.
During the upcoming hearing, the senator expressed his intention to discuss crypto with the Fed Chair. If Powell uses this opportunity to communicate his stance on crypto regulation and the potential risks involved, there is a possibility of a slight dip in crypto prices or even a full-blown crash.
Powell had previously cautioned about the possible market-wide repercussions of a future crypto bloodbath during a panel discussion in September 2022.
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