Catenaa, Tuesday, February 18, 2024 – Federal Reserve Governor Christopher Waller is urging the creation of a regulatory framework that would allow banks and financial institutions to issue stablecoin.
Speaking at a financial conference, Waller emphasized the growing role of stablecoins in the global economy and said that clear rules would ensure stability while fostering innovation. He argued that regulated banks should be permitted to issue stablecoins, provided they maintain appropriate reserves and risk controls.
“Stablecoins could serve as a bridge between traditional banking and digital finance, but a robust regulatory framework is necessary to mitigate risks,” Waller said.
His comments come as lawmakers discuss various proposals to regulate stablecoins, including the recently introduced STABLE Act of 2025. The act, backed by bipartisan lawmakers, seeks to impose reserve requirements and regular audits on stablecoin issuers to protect consumers and the financial system.
The debate over stablecoin regulation has intensified as their use grows in digital payments and remittances. Critics argue that without oversight, stablecoins could threaten financial stability, while supporters claim they offer faster, more efficient transactions.
Waller’s stance aligns with industry leaders who advocate for integrating stablecoins into traditional finance rather than restricting them. His remarks signal that the Federal Reserve may support stablecoin adoption if clear regulatory guidelines are established.
