Christopher Waller, a representative of the Federal Reserve System, called on colleagues and bankers to stop fearing decentralized finance and stablecoins. In his view, these technologies will become drivers of innovation in the American payment system.
DeFi is not scary; it's just new technology.
'There is nothing frightening about decentralized finance—it's just new technologies for transferring assets and recording transactions,' Waller stated during a speech at the Wyoming Blockchain Symposium 2025 on August 20. The Board member emphasized that using innovative technologies to create new payment services is not a new story.
The official urged politicians and the private banking sector to work together on developing cryptocurrency payment infrastructure. 'There is no reason to fear when it comes to using smart contracts, tokenization, or distributed ledgers in everyday transactions,' he noted.
Waller's comments reflect the gradual shift of the Federal Reserve towards embracing cryptocurrencies and their future role in the American payment system. In April, the regulator withdrew 2022 guidelines that hindered banks from participating in cryptocurrency activities and working with stablecoins.
From caution to openness.
Last week, the Federal Reserve concluded its oversight program for 'novel activities,' which focused on risks associated with cryptocurrencies. On August 19, Federal Reserve Vice Chair for Supervision Michelle Bowman suggested allowing employees to hold small amounts in cryptocurrencies for better understanding of the technologies.
Waller's views on cryptocurrency may soon carry more weight—he is considered a leading candidate to replace Jerome Powell as chairman of the Federal Reserve. Powell's term expires in May 2026 and can only be extended if re-nominated by the U.S. President and confirmed by the Senate. Meanwhile, reports indicate that Trump is pressuring Powell to resign.
Meme coins are like apples: a simple analogy for complex processes.
Waller explained that transactions in DeFi follow the same logic as regular purchases with a debit card. He compared using stablecoins to purchase a meme coin to paying for an apple at a grocery store.
'I can go to the store and buy an apple using a digital dollar from my checking account. I tap my debit card to the reader to complete the transaction. In the end, the machine prints a receipt—a record of the transaction. The same process applies to the world of cryptocurrencies,' he explained.
'I buy a meme coin and use a stablecoin as a means of payment. The transaction occurs using a smart contract. In the end, the transaction is recorded in a distributed ledger,' added the Federal Reserve representative.
The GENIUS Act is an important step for stablecoins.
The recent signing of the 'U.S. National Innovation Development and Regulation of Stablecoins Act' (GENIUS) was deemed an 'important step' for the acceptance of stablecoins, according to Waller. He stated that this will help stablecoins 'unlock their full potential.'
An official noted that stablecoins are capable of preserving and expanding the role of the dollar at the international level—especially in countries with high inflation or limited access to physical dollars—while simultaneously improving retail and cross-border payments.
The stablecoin market currently stands at $280 billion. According to estimates from the U.S. Department of the Treasury, it is projected to reach $2 trillion by 2028—a growth of 615%. The agency justified its forecast by stating that a regulatory framework for stablecoins could rapidly accelerate demand for U.S. Treasury bills.
The stance of one of the key figures at the Federal Reserve reflects a growing understanding that cryptocurrency technologies are becoming an integral part of the U.S. financial ecosystem. Instead of resistance, the regulator is opting for a path of integration and development.
