FED Member Shows Support For Stablecoin Legalization in the US

Christopher Waller, a member of the Federal Reserve Board in the US, has shown his support for stablecoins at a recent San Francisco conference. According to Waller, stablecoins have the potential to expand the role of the US dollar on a global level but emphasized the need for a clear regulatory framework.

The Regulatory Framework Should Address Potential Threats and Issues

While speaking about the regulatory framework, Waller noted that it needs to directly address the potential threats and issues that may arise from having legal stablecoins. He added that banks and non-bank financial institutions should have the green light to issue regulated stablecoins.

Waller also added that operalization risks could arise if the regulatory rules aren’t harmonized across all countries. According to him, different rules in regions and countries could lead to an unstable market and it can affect the operations of USD users.

The many challenges that come up from a legalized crypto industry are part of the reason why it’s so hard to make them an official payment solution not just in the US, but all around the world. Waller stated in the US specifically, regulatory conflicts between states could appear and that can limit the increase of stablecoin production.

The US Stablecoin Market is Becoming Popular For Foreign Payment Solutions Companies

One of Sweden’s biggest payment solution companies, Klarna, has been rumored that it plans to file for an IPO in the US and its CEO, Sebastian Siemiatkowski, shared on X (formerly Twitter) that they might embrace crypto.

Siemiatkowski stated that he has some ideas, but they’re all in their inception phase, so there are no official confirmations as of now. This further emphasizes the fact that the interest in stablecoins in the US is big and that many companies would benefit from a legalized industry that includes these assets.

While speaking about the possibility, Siemiatkowski stated that Klarna will attempt to catch up with PayPal and Revolut, which already offer cryptocurrency services.