Fed vice-chair candidate urges regulation of stablecoins

The nominee for the position of vice chair of the FedФРС Michael Barr, at a Senate hearing, highlighted the importance of creating a regulatory framework for stablecoins. If confirmed to the post, he would focus on banking regulation tasks.

Barr cited the need to mitigate risks to financial stability. In his view, cryptocurrencies possess “growth potential based on economic value,” but carry “some significant risks.” In particular, the possibility of panic among holders of “stablecoins.”

The main task in regulating digital assets, the candidate said, is investor protection, which is the prerogative of other agencies. Thus Barr responded to Senator Elizabeth Warren’s comments, who touched on the topic of the Terra collapse.

Beyond stablecoins, the deputy chair’s remit also covers CBDC. For Barr, the issuance of a digital dollar is a question that requires “a scrupulous examination.”

Earlier, Fed Chair Jerome Powell noted that for the United States it is important not to be first to issue a CBDC, but to do so with the right approach, сделать это с правильным подходом.

In April 2022, President Joe Biden предложил кандидатуру Майкла Барра на роль вице-председателя ФРС.

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