Federal Reserve Governor and former FOMC member Christopher Waller compared decentralized finance (DeFi) with centralized finance (CeFi), asserting that the former cannot completely replace the latter. At the Vienna Macroeconomics Workshop on October 18, Waller also highlighted the potential threats and regulatory challenges of stablecoins, suggesting that appropriate regulations could address these issues.

US Treasury Secretary Janet Yellen and Senator Elizabeth Warren have long pressed for stablecoin regulation. In February 2024, Yellen urged Congress to provide federal authority to regulate stablecoins and their issuers. The Treasury Secretary believed that the new stablecoin legislation could bring financial stability and tighten consumer protection.

In a letter to Yellen, Warren pointed out the significance of including anti-money laundering (AML) policies in stablecoin legislation. Drawing attention to the increasing threats of cryptocurrencies, especially in light of terrorist groups’ reliance on digital assets, Warren highlighted the emergency of implementing new stablecoin regulations.

Crypto enthusiast Walter Bloomberg shared an X post today highlighti…

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