Federal Reserve Calls for Stronger Stablecoin Regulations

The Federal Reserve (Fed) has urged stronger regulations for stablecoins, aiming to enhance market security and boost confidence. Fed Governor Michael Barr emphasized the need for specific measures to safeguard the financial system and ensure the safe operation of these crypto assets. This initiative focuses on requiring stablecoin backing by highly liquid assets like U.S. Treasury bonds, a move designed to address regulatory gaps and potentially impact market dynamics.