Federal Reserve Lifts Guidance on Stablecoin Regulation for Non-Banks

The Federal Reserve has withdrawn its previous guidance concerning stablecoins issued by non-bank entities, signaling a major shift in its regulatory approach to digital assets. This move coincides with ongoing legislative efforts aimed at crafting comprehensive stablecoin regulation in the U.S., spearheaded by figures like Chairman French Hill and Senator Cynthia Lummis. Their bills, such as the STABLE Act and GENIUS Act, illustrate this transition towards more robust legislation that balances innovation with financial stability.