Fed’s Barr Sees Stability Risk in Private Crypto Stablecoins (2)

The Federal Reserve’s top bank watchdog said crypto stablecoins could amount to private money that might be destabilizing for the US financial system if left unchecked.

“There is interest in strong, federal regulation of stablecoins that makes sure the Federal Reserve can approve, regulate and enforce against stablecoin issuers, including wallets,” Michael Barr, vice chair for supervision, told attendees Tuesday at the DC Fintech Week event.

Barr was reiterating the central bank’s concern about private-industry crypto tokens pegged to assets like the US dollar and their potential to disrupt the broader financial world. “We need a strong framework,” ...