FRB Vice Chair Barr Wants Authority over Stablecoins

Federal Reserve Board ("FRB") Vice Chair for Supervision Michael S. Barr touted the "wave of innovation in the payments system" and argued the need for legislative and regulatory action on stablecoins "before significant risks emerge."

In a speech before the Federal Reserve Bank of Philadelphia Annual Fintech Conference, Mr. Barr stated that the FRB does not have direct supervisory and regulatory authority over stablecoin issuance. He expressed concern over the risks posed to financial stability, monetary policy and U.S. payment systems if a non-federally regulated stablecoin were to become widespread. He emphasized the importance of mitigating emerging risks now, adding that the FRB looks forward to further engaging with Congress to ensure a "robust federal framework."