U.S. Fed Supports Stablecoin Regulation
US Federal Reserve Governor Christopher Waller called for a regulatory framework that would enable banks to issue dollar-pegged digital currencies and stated that stablecoins could broaden the appeal of the US dollar.
Waller stated that stablecoins are an “important innovation for the crypto ecosystem with the potential to improve retail and cross-border payments.”
He also stated that the stablecoin market has reached maturity and “would benefit from a US regulatory and supervisory framework that addresses stablecoin risks directly, fully, and narrowly,” adding that banks and non-banks should be able to issue stablecoins.
In addition, he called for clear regulations and said he was confident the private sector could develop stablecoin solutions for consumers and businesses. “I think the private sector can create solutions that help businesses and consumers, and the public sector can create a fair set of rules for market participants to follow,” he stated.
Waller acknowledged their current use cases, which are currently limited and include cross-border payments, retail payments, access to US dollars, particularly in countries with high inflation, and a safe store of value within cryptocurrency trading.
The US lacks a clear regulatory framework, state and international regulations are fragmented, and balanced regulation that ensures safety without stifling innovation are some of the difficulties. He also emphasized the dangers of failures and “de-pegs.”.
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