According to one Federal Reserve leader, “Congress should act expeditiously” in order to pass stablecoin legislation. Michael Barr, Vice Chair for Supervision, addressed the topic of stablecoins during a speech about safety in the financial sector.
“I believe Congress should act quickly to pass necessary legislation to bring stablecoins (particularly those that serve as a method of payment inside the prudential regulatory framework,” stated Michael Barr, the Fed’s vice-chair for supervision a speech at The Brookings Institute.
This think tank is based in Washington. I look forward to continuing partnership with Congress and other regulatory agencies to address the risks associated with stablecoins.
According to a Federal Reserve leader, Congress must act on stablecoins.
Barr’s role is to oversee financial stability, but he is not alone among regulators when he says that “Stablecoins” could pose financial stability risk, just like unregulated private money.
He said that “crypto-asset related activities, both outside and within supervised banks require oversight so people are fully informed about the risks they face.
In the last year, stablecoins have been a central point of crypto-focused legislation in Congress. The House Financial Services.
The Committee leadership made a late July push in order to get a bill regarding stablecoins out by August recess. The Senate’s leading Republican, Pat Toomey, , has been circulating potential legislation.
Barr’s fellow Fed Vice Chair Lael Mindard spoke today in New York about how the Fed is issuing a digital currency.