Fed’s Barr Urges More Regulation to Boost Stablecoin Trust (1)

Federal Reserve Governor Michael Barr said more specific regulation is needed to safeguard stablecoins, which he said have the capacity to provide a variety of benefits to the financial system.

“For stablecoins to reach their potential, additional work is needed to create guardrails that protect households and businesses, and the financial system as a whole,” Barr said Thursday in prepared remarks for an event in Washington.

Vice Chair for Supervision at the US Federal Reserve Michael Barr

Photographer: Al Drago/Bloomberg

Barr, the Fed’s former head of supervision and regulation, welcomed the passing of the Genius Act earlier this year, which established rules including what assets are needed to provide backing to stablecoins. But ...