Waller Proposes Regulated Stablecoin Framework for Banks & Non-Banks

Federal Reserve Governor Christopher Waller has proposed a new framework for regulating stablecoins in the US, allowing both banks and non-banks to issue them. This proposal is intended to bolster the US dollar’s global influence while enhancing digital asset stability and potentially encouraging greater institutional participation in the stablecoin market. Waller suggests that his framework will allow both non-bank entities and traditional financial institutions to issue regulated stablecoins. The proposal comes amidst ongoing debates about the scope of stablecoin regulation, raising potential implications for the financial industry.