On March 7, Jerome H. Powell, the Chairman of the Federal Reserve, is scheduled to participate in the open session, and the market is eagerly awaiting the Fed's plan for interest rate hikes for the year. Powell's perspective on the crypto market is expected to be particularly important, given his earlier comments about the need for better cryptocurrency regulation in September 2022.
The upcoming hearing is crucial, especially in light of recent regulatory enforcement measures taken by the U.S. Securities and Exchange Commission (SEC) against the crypto industry. As their U.S. banking partners remain hesitant, crypto companies are finding it difficult to carry out USD-related transactions. Furthermore, the industry faces significant challenges due to the lack of regulatory clarity in other areas.
Congressional Hearing to Discuss Cryptocurrencies
In the upcoming hearing on The Semiannual Monetary Policy Report to Congress, Senator Bill Hagerty plans to raise the topic of cryptocurrencies. The hearing, which focuses on banking, housing, and urban affairs, will likely center on Jerome Powell's views on the U.S. economy and the Fed's efforts to balance inflation control with interest rate hikes. The market has shown a keen interest in Powell's speeches following FOMC meetings, as they can significantly affect cryptocurrency prices. Senator Hagerty intends to discuss crypto regulation and potential risks with the Fed Chair during the hearing. If Powell chooses to communicate his stance on these issues, there may be a slight decline or even a crash in crypto prices. In September 2022, Powell had previously warned about the potential market-wide repercussions of a future crypto bloodbath during a panel discussion.