The Federal Reserve highlights the financial stability risks associated with stablecoins, advocating for regulatory measures to address these concerns. The growth of stablecoins could significantly affect the lending abilities of community banks.
During an April meeting, officials emphasized the need for unified standards for both bank and non-bank stablecoin issuers to maintain financial stability. They compared the risks of stablecoins to past disruptions in banking, stressing the necessity for oversight.
The Community Depository Institutions Advisory Committee raised alarms over non-bank stablecoin issuers, linking them to potential outflows of bank deposits. They recommended integrating stablecoins into a robust regulatory framework to prevent further risks.
Full story here: https://coincu.com/337498-fed-considers-stablecoin-regulation