Fed’s Barr invokes ‘long and painful history’ while encouraging strong stablecoin oversight
The Block
Federal Reserve Governor Michael Barr emphasized the need for robust stablecoin oversight to prevent financial instability and ensure reliable asset redemption.Summary
Federal Reserve Governor Michael Barr has called for strict oversight of stablecoins, citing a "long and painful history of private money created with insufficient safeguards." While acknowledging the GENIUS Act provides a regulatory framework, Barr warned that issuers face financial incentives to take excessive risks with reserve assets. He stressed that stablecoins must be reliably redeemable at par under all market conditions to maintain financial stability and prevent illicit activities.
(Source：The Block)