Federal Reserve Board member: It is recommended to allow banks and non-bank institutions to issue regulated stablecoins
Recently, Federal Reserve Board member Christopher Waller proposed that both banks and non-bank institutions should have the opportunity to issue regulated stablecoins. Does this sound a bit confusing? Let me help you break it down in a simple way!
Waller said at a conference in San Francisco that the stablecoin market needs a regulatory framework that "directly, comprehensively and narrowly" covers stablecoin risks. In other words, there must be a clear set of rules that allow financial institutions to issue stablecoins safely. He also said that this framework should allow non-banks and banks to issue regulated stablecoins and consider the impact of regulation on the payment landscape.
It is worth noting that Waller's remarks are similar to what Federal Reserve Chairman Jerome Powell said in February last year. At that time, Powell said in a meeting with the House Financial Services Committee that he fully supported the establishment of a stablecoin framework and reiterated that the Federal Reserve is committed to developing stablecoins and central bank digital currencies in the United States.
On the other side, Maxine Waters, a Democratic congressman on the House Financial Services Committee, recently proposed a stablecoin regulation proposal involving the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the Federal Reserve. This shows that the Democratic Party is also actively promoting this matter.
At the same time, the Republican Party is not to be outdone. Earlier this month, French Hill, the Republican chairman of the House Financial Services Committee, also submitted a draft stablecoin regulation bill. Unlike Waters' proposal, Hill's bill gives the stablecoin regulation power to the Office of the Comptroller of the Currency (OCC) instead of the Federal Reserve.
This means that both the Republicans and the Democrats are actively promoting stablecoin regulatory regulations under the leadership of the Trump administration. It seems that the development of stablecoins in the United States is really on the right track.
💬 Do you support banks and non-bank institutions issuing stablecoins? What impact do you think a unified regulatory framework will have on financial markets? See the comments section!
