Fed's Barr Urges Stronger Regulation to Enhance Trust in Stablecoins

ChainCatcher News, according to Bloomberg, Federal Reserve Governor Michael Barr stated that given the potential of stablecoins to bring multiple benefits to the financial system, more specific regulatory measures are needed to ensure their safe operation. He pointed out: "To fully realize the potential of stablecoins, more work is needed to establish a regulatory framework that protects households, businesses, and the entire financial system."

He welcomed the passage of the "Genius Act" earlier this year, but also said that regulators must now work to fill the legislative gaps in the act to enhance market confidence in stablecoins and protect consumers and businesses from runs and other destabilizing events. However, Barr also believes that stablecoins can improve the financial landscape, such as making remittances faster and less costly, and increasing the efficiency of global trade. Barr emphasized that before the use of stablecoins grows significantly, several measures may still be needed, including stronger regulation. He stated that it is still uncertain whether new regulations are needed to further oversee the industry, or whether regulators can build a sufficiently robust regulatory system within the framework of the "Genius Act".