Yellen Says Fed Has No Authority Over Bitcoin

Law360, Washington (February 27, 2014, 4:26 PM EST) -- Federal Reserve Chair Janet Yellen told lawmakers Thursday that the Fed will not regulate Bitcoin, saying she believed it and other so-called cryptocurrencies were outside the agency's current supervisory and regulatory authority, but urged Congress to explore exactly how the new payment methods should be regulated.

Speaking in response to a question from Sen. Joe Manchin, D-W.Va., at a hearing of the Senate Banking Committee, Yellen said she believed Bitcoin and other similar types of digital “payment innovations” were “entirely outside the banking industry,” meaning the...
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