Bank of New York Mellon executives call for clear regulatory framework for stablecoins

During a recent congressional hearing, Caroline Butler, Global Head of Digital Assets at BNY Mellon, emphasized that traditional financial institutions have provided important services to stablecoin issuers such as Circle (USDC), but the industry urgently needs clear regulatory frameworks from the US government. Butler said, "Ensuring that custodian banks protect customer assets in accordance with federal regulations is crucial for the ecosystem, as it is the foundation for building market trust." She also pointed out that traditional financial institutions hope to participate in emerging fields such as stablecoins and blockchain technology to meet the constantly changing needs of the market and customers. At the hearing, Guynn, a well-known compliance lawyer for Wall Street banks, also stated that if the stablecoin issuer holds sufficient liquid asset reserves and capital buffers in accordance with the requirements of the STANLE Act, and has no significant liabilities, its payment of stablecoins should be as safe as bank deposits and central bank currency.