FED Member Christopher Waller Talked About Stablecoins! Did He Give the Green Light? Here Are the Details

Stablecoins have the potential to sustain and expand the role of the US dollar in international markets, US Federal Reserve Board Member Christopher Waller said at a conference in San Francisco. However, its development still depends on a solid business case and a coherent regulatory system. Stablecoins Need a Clear Regulatory Framework Waller noted that the stablecoin market would benefit from a U.S. regulatory and supervisory framework that addresses the risks of stablecoins. He stressed that the framework should directly, comprehensively and precisely address the potential risks of stablecoins and allow banks and non-banks to issue regulated stablecoins, while considering the impact of regulatory measures on the payments sector. Waller also warned that stablecoins could face a “risk of operationalization,” especially if regulatory rules are not harmonized across countries. He said that differences in regulatory systems between countries and regions could lead to regulatory conflicts at home and abroad, which could affect the global operations of USD stablecoin issuers. According to Waller, state regulators play a “key role” in the development of the stablecoin market, but the risk of regulatory conflict between states could hinder the nationwide proliferation of stablecoins, thereby limiting their scalability. Currently, several states are in the process of developing or improving stablecoin regulations, and market participants are closely monitoring regulatory developments at the federal level. *This is not investment advice. Continue Reading: FED Member Christopher Waller Talked About Stablecoins! Did He Give the Green Light? Here Are the Details