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ABA-Fed's Waller Pushes Back on Stablecoin Report Recommendations.

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ENPNewswire-November 19, 2021--ABA-Fed's Waller Pushes Back on Stablecoin Report Recommendations

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Release date- 17112021 - ABA-Fed's Waller Pushes Back on Stablecoin Report Recommendations.

Challenging a recent report from the President's Working Group on Financial Markets, Federal Reserve Governor Christopher Waller said at a financial stability conference today that stablecoins need not be issued only by insured depository institutions.

'The regulatory and supervisory framework for payment stablecoins should address the specific risks that these arrangements pose-directly, fully, and narrowly,' he said. 'It does not necessarily mean imposing the full banking rulebook, which is geared in part toward lending activities, not payments.'

Waller acknowledged that stablecoins-which are crypto assets that are pegged to an external benchmark to minimize volatility and maximize usefulness for payments-should be understood 'as a new version of something older and more familiar: the bank deposit.' The 'biggest gap' between stablecoins and bank funds,' Waller added, is 'robust, consistent supervision and regulation and appropriate public backstops...

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