Republican Lawmakers Accuse Federal Reserve of Undermining Stablecoin Regulation
A group of Republican lawmakers has criticized the Federal Reserve for impeding the advancement of their bill to regulate stablecoins. They claim that the central bank’s recent actions to bolster its oversight of banks’ crypto and stablecoin ties are effectively preventing banks from issuing payment stablecoins. The lawmakers express concern that these actions will deter financial institutions from participating in the digital asset ecosystem and subvert the progress made by Congress in establishing a payment stablecoin regulatory regime.
Key Points:
- The Federal Reserve published a letter outlining the requirements for supervised state banks engaging in stablecoin activity.
- The central bank launched the “Novel Activities Supervision Program” to enhance its supervision of banking organizations involved in crypto and technology-driven partnerships.
- The lawmakers question whether the Federal Reserve plans to consult state banking regulators regarding payment stablecoin activities.
- The House Financial Services Committee advanced a regulatory framework for stablecoins, but bipartisan negotiations have faced obstacles.
- The lawmakers believe that working with Congress to establish a regulatory framework would better protect consumers and provide certainty to market participants.
Hot Take:
The Republican lawmakers’ criticism of the Federal Reserve highlights the tension between regulators and lawmakers in shaping the future of stablecoin regulation. The lawmakers argue that the central bank’s actions undermine their efforts, emphasizing the need for collaboration and a clear regulatory framework to promote innovation and protect consumers in the crypto industry.
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