The Federal Reserve does not have the authority to regulate the digital currency Bitcoin, Fed chief Janet Yellen said Thursday.
During her semi-annual testimony before the Senate Banking Committee, Yellen took on questions from Virginia Democratic Sen. Joe Manchin, who has called on federal regulators to ban the currency.
“Bitcoin is a payment innovation that’s taking place outside the banking industry,” Yellen said. “To the best of my knowledge there’s no intersection at all, in any way, between Bitcoin and banks that the Federal Reserve has the ability to supervise and regulate. So the Fed doesn’t have authority to supervise or regulate Bitcoin in anyway.”
The volatile currency has come under renewed scrutiny after a major Bitcoin exchange went offline earlier this week.
“Certainly it would be appropriate for Congress to ask questions about what the right legal structure would be for digital currencies,” Yellen said.
More Must-Reads From TIME
- The 100 Most Influential People of 2024
- The Revolution of Yulia Navalnaya
- 6 Compliments That Land Every Time
- What's the Deal With the Bitcoin Halving?
- If You're Dating Right Now , You're Brave: Column
- The AI That Could Heal a Divided Internet
- Fallout Is a Brilliant Model for the Future of Video Game Adaptations
- Want Weekly Recs on What to Watch, Read, and More? Sign Up for Worth Your Time
Write to Noah Rayman at noah.rayman@time.com