FED Member Christopher Waller Spoke About Stablecoins! Did He Give the Green Light? Here are the Details

Christopher Waller, a member of the Board of Governors of the Federal Reserve, said at a conference in San Francisco that stablecoins have the potential to sustain and expand the role of the US dollar in international markets.

However, its development is still dependent on a strong business case and a consistent regulatory system.

Stablecoins Need a Clear Regulatory Framework

Waller noted that the stablecoin market will benefit from a US regulatory and supervisory framework addressing the risks of stablecoins.

It emphasized that while the frame directly, comprehensively, and definitively addresses the potential risks of stablecoins and considers the impact of regulatory measures on the payments sector, banks and non-bank institutions should be allowed to issue regulated stablecoins.

Waller also warned that stablecoins could face an 'operational risk' if regulatory rules are not harmonized across countries.

It said that differences in regulatory systems between countries and regions could lead to regulatory conflicts domestically and internationally, and this could affect the global operations of USD stablecoin issuers.

According to Waller, state regulators play a "key role" in the development of the stablecoin market, but the risk of interstate regulatory conflicts may prevent stablecoins from becoming widespread nationwide and thus limit their scalability.

Currently, several states are in the process of developing or improving stablecoin regulations, and market participants are closely monitoring regulatory developments at the federal level.