The Fed’s attitude to the regulation of cryptocurrency might change in the coming months.
It all began in July 2019, when US President Donald Trump appointed Judy Shelton as a future member of the Board of Governors of the Federal Reserve itself.
Shelton, in fact, has not yet formally joined the Board, but she is expected to do so soon and is known to be critical of the Fed and its monetary policies, so much so that her joining the Board could lead to some change.
For example, as far as the crypto and related world is concerned, she recently officially stated that she believes that the US needs fintech innovation to keep up with other countries.
In fact, Shelton was heard yesterday in the Senate for her confirmation hearing on joining the Fed Board, and during this hearing she also argued that issuing a digital dollar could help maintain the US currency’s leadership in global trade.
“Yes, it is a dominant reserve currency but we can’t rest on our laurels in that regard. Rival nations are working very diligently to have an alternative to the dollar. I think it is very important that we get ahead of the curve to ensure that the dollar continues to offer the best currency in the world“.
Shelton is a supporter of the gold standard and has always opposed the expansive policies of the Fed.
On the subject of cryptocurrencies, she added:
“A modern version of this approach—one that permits the issuance of virtual currencies in tandem with government-issued currencies, adapting legal tender laws to permit healthy currency competition—should be put forward.”
Judy Shelton’s imminent full membership of the Fed’s Board of Governors could therefore lead on the one hand to a change, or correction, of the current expansionary policies of the US Central Bank, and on the other to a more open attitude towards the regulation of digital assets and in particular cryptocurrencies.
It is not yet possible, however, to quantify with a good degree of confidence how profound its impact will be and therefore what changes will be made to the Fed’s policies towards digital currencies, but this is not the only recent sign that the US may reassess its approach to cryptocurrencies.