Federal Reserve Vice Chair Barr warns of stablecoin risks as regulators develop rules

As various regulatory agencies formulate relevant regulations, this is undoubtedly a warning to banking regulatory authorities. “The quality and liquidity of stablecoin reserve assets are crucial for their long-term survival,” Barr stated in a speech prepared for the Federalist Society. “At the same time, stablecoin issuers are incentivized to maximize returns on reserve assets by expanding the risk spectrum as much as possible.” Expand