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Bank-Only Stablecoins Limit Innovation, Fed’s Waller Says

  • Stablecoins serve as viable competitor to banks on payments
  • Regulation for stablecoins should address specific risks
Christopher Waller
Christopher WallerPhotographer: Andrew Harrer/Bloomberg

Federal Reserve Governor Christopher Waller broke with a report from regulators earlier this month and said he disagrees with the idea that stablecoins should only be issued by banks because it would limit payment-system innovation and competition.

Earlier this month, the Treasury Department, Federal Reserve and other regulators urged lawmakers to let them police stablecoin issuers like banks with robust capital requirements and constant supervision, and said their issuance should be limited to banks.