Federal Reserve Governor Christopher Waller advocates for a regulatory framework that permits banks and non-banks to issue stablecoins.
He believes stablecoins could enhance the U.S. dollar’s global influence, but their effective adoption requires clear regulations.
Speaking at a conference in San Francisco, Waller reiterated this stance, emphasizing that financial institutions can only issue stablecoins if a regulatory framework is in place that directly, thoroughly, and precisely addresses stablecoin-related risks. He stated that this framework should consider the broader impact on the payments landscape while ensuring that banks and non-banks can issue regulated stablecoins.
Stablecoins, digital currencies pegged to traditional assets like the U.S. dollar or Treasury bills, have been a focal point of regulatory discussions. Waller’s remarks echo those of Federal Reserve Chairman Jerome Powell, who, in February 2025, expressed strong support for a stablecoin regulatory framework during a meeting with the House Financial Services Committee. Powell reaffirmed the Fed’s commitment to advancing stablecoins and Central Bank Digital Currencies (CBDCs) in the U.S., further underscoring the importance of regulatory clarity.
Recently, Rep. Maxine Waters, the ranking Democrat on the House Financial Services Committee, introduced a proposal for stablecoin oversight. Her plan calls for regulatory involvement from the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the Federal Reserve, reflecting ongoing efforts to establish a robust regulatory foundation for stablecoins in the U.S.
Meanwhile, outside the U.S., stablecoins are also reshaping financial landscapes. In Brazil, crypto adoption has surged, with stablecoins now driving nearly 90% of digital asset transactions, according to central bank chief Gabriel Galipolo. Speaking at a Bank for International Settlements event in Mexico City on February 7, he attributed this trend to the increasing use of stablecoins for everyday and international payments. However, he warned that this rapid growth presents regulatory challenges, complicating oversight, tax enforcement, and money laundering prevention.
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