Yellen says Fed has no authority on bitcoin issues

Feb 27, 2014

The Federal Reserve has no authority to regulate or otherwise deal with the crypto-currency bitcoin, Fed Chair Janet Yellen said Thursday.

Yellen said in a Senate hearing that the banks under its regulatory purview were not involved with bitcoin, and so the Fed had no powers over its use.

"This a payment innovation that is taking place entirely outside of the ," she said.

"The Fed doesn't have authority with respect to bitcoin."

Yellen pointed to other US regulators, including the Treasury, watching the bitcoin sector for potential money laundering and other criminal uses of the .

However, she stressed, "it's not so easy to regulate bitcoin" because it is used outside the banking system, and has no centralized authority behind it as do other normal "fiat" currencies.

Congress could, however, get involved to set up a legal structure for it, if it wants to, she suggested.

Explore further: Report details benefits of investment in basic research

Related Stories

Banking group sees limited future for Bitcoin

Jan 09, 2014

The online currency Bitcoin has shown unexpected success but its future as a broadly accepted exchange medium is limited, according to a report by a global banking group Thursday.

Entrepreneur makes Bitcoin gift to US college

Feb 19, 2014

In what may be the first college donation of the new electronic currency, a Bitcoin entrepreneur has made a $10,000 virtual donation to a Washington state liberal arts college.

Bitcoin rises above $1,000

Nov 27, 2013

The virtual currency bitcoin Wednesday broke above $1,000 per unit, quintupling in a month, according to Mt. Gox, which manages trading in bitcoin.

EU bank watchdog warns over Bitcoin

Dec 13, 2013

The European Union's banking watchdog on Friday issued a warning over virtual currency trading amid huge swings in the value of Bitcoin, a lack of regulation and money laundering risks.

Recommended for you

Report details benefits of investment in basic research

5 minutes ago

Last year was a notable one for scientific achievements: In 2014, European researchers discovered a fundamental new particle that sheds light on the origins of the universe, and the European Space Agency ...

Heinz Awards honors six for solving critical human issues

Apr 23, 2015

A Massachusetts Institute of Technology researcher who has developed artificial human "microlivers" that can safely test the toxicity of drugs without endangering lives is one of six people chosen to receive Heinz Awards.

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.