**News Flash: Fed Governor Advocates for Regulated Stablecoins**

On Oct. 18, Federal Reserve Governor Christopher Waller highlighted the potential benefits of well-regulated stablecoins during a talk at the Institute of Advanced Studies. Waller noted that stablecoins could reduce global payment costs by cutting out intermediaries, but emphasized the need for robust safety measures to mitigate risks like illicit finance.

Waller also suggested that decentralized finance (DeFi) could complement traditional finance, echoing some US lawmakers' views that stablecoins could extend the US dollar's global dominance. This aligns with recent legislative efforts, including the Clarity for Payment Stablecoins Act introduced by Senator Bill Hagerty.

Despite these initiatives, a Chainalysis report indicates the US is falling behind in stablecoin adoption, with offshore exchanges now handling 60% of transactions.