Federal Reserve Board 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."
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The Federal Reserve Board provided guidance to banking organizations on (i) supervision over "novel activities" and (ii) the process for state member banks to follow before engaging with dollar token or stablecoin activity.
Federal Reserve Board Vice Chair for Supervision Michael S. Barr highlighted the risks and benefits of crypto-asset technologies to the U.S. payment system and called for a unified approach to oversight among regulators.
FRB Governor Christopher J. Waller stated that crypto assets are "speculative" and risky for investors and financial intermediaries, but said agencies need to approach regulating the "crypto ecosystem" in a manner that does not "unduly limit" development.
Federal Reserve Board Governor Michelle W. Bowman outlined her perspective on supervision and regulation of the banking industry and highlighted the costs of over-regulation.