Federal Reserve Governor Waller: Banks and Non-Banks Should Be Allowed to Issue Regulated Stablecoins

BlockBeats News, February 13th, according to Bloomberg, Federal Reserve Board Governor Waller stated that stablecoins have the potential to "maintain and expand" the role of the US dollar internationally, although their success will depend on robust business use cases and a harmonized regulatory framework.

In a speech at a conference in San Francisco, Waller stated: "The stablecoin market would benefit from a US regulatory and supervisory framework tailored to the risks of stablecoins, which should address the risks of stablecoins directly, comprehensively, and with precision." He said: "This framework should permit both banks and non-banks to issue regulated stablecoins and should consider the regulatory implications for the payments space."

Waller also mentioned that stablecoins face "a run risk." Waller said: "The emergence of different stablecoin regulatory regimes across countries and regions could result in domestic and cross-border regulatory conflicts." He also pointed out: "This regulatory fragmentation could make it difficult for issuers of US dollar stablecoins to operate globally."

Waller noted that state regulators play a "key role" in the development of the stablecoin market, and several states are in the process of formulating or finalizing new regulations. "There is a risk of inter-state regulatory conflicts that could hinder the uniform usability of the same stablecoin across all states, thereby reducing the scalability of stablecoins."