State and Federal Governments Must Collaborate on Stablecoins: Fed Governor Bowman
Federal Reserve President Michelle Bowman called on states and the federal government to partner to regulate stablecoins as lawmakers draft legislation.
Bauman was asked a question. Wednesday at the Digital Chamber’s DC Blockchain Summit.Explains what role state and federal governments should play in solving the stablecoin problem. “There is greater openness at the state level to have conversations about expanding this space,” a senior Republican Fed official said.
“The important part for me is that there is a partnership,” Bowman said.
“The U.S. currency carries execution risk and other types of risks that may require the protections we provide for the U.S. dollar,” Bowman said. “So, from the Fed’s perspective, it’s important that we have the ability to input and collaborate on whatever framework looks like as the potential to create stablecoins in the U.S. moves, whether it’s one of the current bills. Going forward, it’s important that the Fed has the ability to input and collaborate on what’s on the table. It will take its place.”
legislation in progress
Bowman did not mention specific legislation, but lawmakers including: House Financial Services Committee Chairman Patrick McHenry, R-N.C., and Rep. Maxine Waters, D-Calif., have been working on stablecoin legislation for nearly two years.
One problem with the bill was who would be the primary regulator of stablecoin issuers: the federal government or state regulators. Last summer, Waters called stablecoin legislation “a serious problem.” supply This allows state regulators to approve stablecoin issuance without input from the Federal Reserve. that unclear Has it been resolved?
Sens. Cynthia Lummis (R-Wyo.) and Kirsten Gillibrand (D-N.Y.) introduced the bill. april It has provisions creating a “federal and state regulatory framework for stablecoin issuers that preserves the dual banking system.” Specifically, the bill creates a cap that would allow “national trust companies to create and issue payment stablecoins up to $10 billion.”
Gillibrand said Wednesday that he would like to get a vote on the stablecoin bill.
“We haven’t been able to get a hearing or a markup or even a debate in a committee of jurisdiction,” Gillibrand said on a separate panel at the DC Blockchain Summit. “So it was a bit frustrating because we had to do that.”
She added that while the two have been working well with the Treasury and the Federal Reserve, “no one in the White House is necessarily focused on this issue.”
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