Federal Reserve Governor Waller: Banks and non bank institutions should be allowed to issue regulated stablecoins

On February 13th, according to Bloomberg, Federal Reserve Board member Waller stated that stablecoins have the potential to "maintain and expand" the role of the US dollar internationally, although their rise and fall will depend on solid commercial applications and a unified system of rules. In his speech at a conference in San Francisco, Waller pointed out that "the stablecoin market will benefit from a US regulatory and supervisory framework that addresses stablecoin risks directly, comprehensively, and accurately." He said, "This framework should allow banks and non bank institutions to issue regulated stablecoins, and should consider the impact of regulation on the payment industry Waller also mentioned that stablecoins face a "run risk". Waller said, "The emergence of stablecoin regulatory systems in different countries and regions may lead to regulatory conflicts both domestically and internationally." He also pointed out that "this fragmented regulation may make it difficult for issuers of US dollar stablecoins to operate globally Waller mentioned that regulatory agencies in various states have played a "key role" in the development of the stablecoin market, and multiple states are developing or finalizing new regulations. There is a risk of interstate regulatory conflicts, which may hinder the use of the same stablecoin in all states, thereby reducing its scalability