Federal Reserve Vice Chair: Will not intervene in cryptocurrency adoption, such innovation will not affect the Fed's ability to conduct monetary policy

On November 17, Federal Reserve Vice Chair Jefferson stated that financial innovation has always been a feature of the U.S. financial system, and the rise of digital assets is part of this. The Federal Reserve's regulations neither encourage nor prevent the use of cryptocurrencies; this is up to the private sector. The role of the Federal Reserve is to ensure that as the public adopts new technologies, the banking industry remains safe and sound. As long as the Federal Reserve's policies stay aligned with the needs of businesses and households, there is no reason to believe that cryptocurrencies and other innovations will affect the Federal Reserve's ability to conduct monetary policy.