New digital assets will require changes in laws, may need new ones, Powell says

The emergence of digital currencies and stablecoins "will require changes in existing laws and regulations," said Federal Reserve Chair Jerome Powell during the Bank for International Settlements Innovation Summit. Not only that, the new technologies may require "new rules, laws, and frameworks" to deal with digital currencies, he said. "There's no question that we're in a period of rapid technological change, especially in payments," he said. With the fast pace of innovation in financial target, "we don't know how they'll (digital products) will behave in time of market distress," he said. Regulators will also need to address the potential for crypto to be used in illicit transactions, he added. Developing... check back for details.