Yesterday, Federal Reserve Chairman Jerome Powell testified before the House Financial Services Committee, making a statement which settled crypto investor concerns about the legality of cryptocurrencies in the United States. Recently, China’s central bank issued guidance that all cryptocurrency-related transactions would be considered to be illegal, a move which many believe to be part of a coordinated plan to move the country towards its CBDC, the e-yuan.

“Chairman Powell made it clear that the United States would not be following China’s lead,” opined Richard Gardner, CEO of Modulus, a US-based developer of ultra-high-performance trading and surveillance technology that powers global equities, derivatives, and digital asset exchanges. “The United States, at this point in time, is not interested in attempting to use government decree in order to channel its population away from digital assets which may, at some point, compete with their own central bank digital currency.”

During his statement, Powell said that there “no intention to ban” cryptocurrencies, adding that stablecoins “are like money-market funds, they’re like bank deposits, but they’re to some extent outside the regulatory perimeter and it’s appropriate that they be regulated.”

“The headline has been that the United States isn’t banning cryptocurrencies, but what the Chairman said, as it relates to stablecoins, is worth considering, too. He’s acknowledging that, at least stablecoins, need another glance in terms of regulation. I’ve been arguing, for years, that the digital currencies segment must have clear-cut regulatory guidance so that exchanges can work together with the government in order to prevent nefarious activities. The digital assets space is still in its infancy, and it isn’t going anywhere. For the sake of all stakeholders, it is time to create a commonsense rulebook that protects the citizenry while enhancing the ability of innovators to compete,” said Gardner.

Modulus is known throughout the financial technology segment as a leader in the development of ultra-high frequency trading systems and blockchain technologies. Over the past twenty years, the company has built technology for the world’s most notable exchanges, with a client list which includes NASA, NASDAQ, Goldman Sachs, Merrill Lynch, JP Morgan Chase, Bank of America, Barclays, Siemens, Shell, Yahoo!, Microsoft, Cornell University, and the University of Chicago.

“What’s notable here is that the United States is moving in an opposite direction from China. It signifies that the emergence of CBDCs will not necessitate the end of cryptocurrencies. In fact, I expect that, in many cases, as CBDCs make the general populace more aware of digital assets, you will likely see new segments of investors who become interested in cryptocurrencies. It is a great time for cryptocurrency exchanges to double down and become more competitive because I think they will face competition for new operators as they begin to realize that there is still massive opportunities in the space,” said Gardner.