Federal Reserve's Barr urges stronger regulation to enhance trust in stablecoins
ChainCatcher news, according to Bloomberg, Federal Reserve Governor Michael Barr stated that given the potential benefits stablecoins could bring to the financial system, more specific regulatory measures are needed to ensure their safe operation. He noted, "To fully realize the potential of stablecoins, more work is needed to establish a regulatory framework that protects households, businesses, and the entire financial system."He welcomed the "Genius Act" passed earlier this year, but he also indicated that regulators must now work to fill the legislative gaps in the bill to enhance market confidence in stablecoins and protect consumers and businesses from runs and other destabilizing events. However, Barr also believes that stablecoins can improve the financial landscape, such as making remittances faster, cheaper, and enhancing global trade efficiency. Barr emphasized that before the use of stablecoins increases significantly, several measures may still need to be taken, including stronger regulation. He stated that it is currently uncertain whether new regulations are needed to further regulate the industry, or whether regulators can build a sufficiently robust regulatory framework within the "Genius Act."