Michael Barr: The Fed Needs Authority Over Stablecoin Issuers

Michael Barr, vice chairman of supervision at the US Federal Reserve, has said the Fed needs to regulate and enforce the law on stablecoin issuers.

According to him, federal oversight has been the main sticking point as the US House of Representatives debates legislation regulating the sector.

While Republican lawmakers prefer state oversight for stablecoin issuers, Democrats favor a dominant role for the Federal Reserve.

He has stated:

“We need a strong federal framework. They’re creating a form of private money, and private money needs to be well-regulated.”

Currently, a bill to regulate stablecoins has been introduced through the House Financial Services Committee. However, the initiative still needs to be approved by the full House and Senate.