Fed Chair Statement: The regulatory framework for stablecoins is urgent, and the interaction between banks and digital asset businesses may be relaxed

Recently, the Fed chairman delivered a speech at the Chicago Economic Club, reiterating the necessity of establishing a regulatory framework for stablecoins, and stated that the Fed does not intend to limit the interaction between the banking industry and the digital asset sector.

The Chair noted that, given the growing importance of digital tools such as stablecoins, both houses of the U.S. Congress are renewing their efforts to develop a legal framework for them. Despite previous unsuccessful cooperation with Congress, he noted that "the tide is changing" and that lawmakers are now showing renewed interest in formalizing regulations.

He emphasized that such a framework should include consumer protection measures, ensure transparency, and added: "Stablecoins, as a digital product, may have quite broad appeal."

Regarding the Fed's stance on banking activities related to digital assets, the chairman acknowledged that U.S. banking regulators, including the Fed, previously took a relatively conservative approach when issuing guidance. However, he stated that as long as consumer rights and financial safety can be ensured, some guidance may be relaxed to accommodate responsible innovation.

"We will strive to make adjustments in a way that maintains the safety and stability of the financial system," he said. This statement further clarifies the Fed's position of not intending to prevent banks from providing services to legitimate digital asset clients.

The Chair also mentioned that digital asset activities are already being carried out within Fed-regulated banks under the established regulatory framework. He cited digital asset custody as an example of how such services can be carried out safely if banks and regulators understand the scope of these activities.

At the same time, he also acknowledged that integrating digital assets into the regulatory framework of traditional finance is very complex and called for the establishment of a more comprehensive regulatory structure.

It is worth noting that the use of stablecoins in payments and digital settlements continues to grow. Last year, the transfer amount of stablecoins approached $14 trillion, surpassing that of a well-known payment company.

Currently, the United States has not established a federal regulatory framework specifically for stablecoins, but recent sessions of Congress have introduced several legislative proposals. Among them, the two bills introduced by the House and the Senate are the most notable.

The Fed's latest stance suggests that U.S. financial authorities are increasingly willing to participate in the development of digital asset policy as stablecoins become increasingly integrated into global financial markets. This change in attitude may create a more conducive environment for the development of the digital asset industry.

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