Fed's Waller: Non-banks and banks should be allowed to issue compliant stablecoins, which have the potential to maintain the status of the US dollar

Odaily Planet Daily News: Federal Reserve Governor Waller said that stablecoins have the potential to "maintain and expand" the international status of the US dollar, although their rise and fall will depend on reliable business use cases and a set of coordinated rules. In his prepared remarks for the San Francisco conference, Waller said: "The stablecoin market will benefit from a US regulatory and supervisory framework that directly, comprehensively and strictly addresses stablecoin risks, should allow non-banks and banks to issue regulated stablecoins, and should consider the impact of regulation on the payment landscape." He added: "The emergence of different global stablecoin regulatory regimes may cause domestic and international regulatory conflicts. This regulatory fragmentation may make it difficult for US dollar stablecoin issuers to conduct business globally." Waller pointed out that state regulators have been "key players" in the development of the stablecoin market. Some states are enacting laws or finalizing new regulations. "State regulations may conflict, which may prevent all states from using the same stablecoin and reduce the scalability of stablecoins." Waller also pointed out that stablecoins are at risk of runs. Recently, bipartisan senators introduced a bill to provide a regulatory framework for stablecoins, including requirements for maintaining one-to-one reserves and complying with anti-money laundering laws. The House Financial Services Committee has released a discussion draft of the bill. (Bloomberg)