Fed Chairman: Supports stablecoin regulation, does not limit bank and Crypto Assets interaction.

The Fed chairman recently expressed his latest views on stablecoin regulation and the Crypto Assets industry. He emphasized the necessity of establishing a regulatory framework for stablecoins, while also stating that the Fed does not intend to restrict the interaction between the banking sector and the Crypto Assets industry.

In a speech at the Economic Club of Chicago, the Fed Chair pointed out that Congress is working again to legislate a framework for stablecoins. Considering the growing importance of these digital tools, he believes that establishing a regulatory framework is necessary.

The chairman mentioned that although previous collaboration with Congress on the stablecoin legal framework had not been successful, he has noticed that the situation is changing. Legislators are now showing new interest in formally establishing regulatory provisions.

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

Regarding the Fed's stance on banking activities related to Crypto Assets, the Fed chairman acknowledged that U.S. banking regulators, including the Fed, have taken a conservative approach in issuing guidance on how banks should manage their exposure to digital assets.

However, he stated that as long as consumer protection and financial security can be ensured, some of these guidelines may be relaxed to accommodate responsible innovation. He said: "We will try to make adjustments in a way that maintains the safety and soundness of the financial system."

These remarks further elucidate the statement made by the Fed chairman earlier, that the Fed has no intention of preventing banks from serving legitimate Crypto Assets clients.

Earlier this year, the Fed Chair clearly stated during his testimony to Congress that Crypto Assets activities have been conducted within banks regulated by the Fed under the established regulatory framework. He used the example of Crypto Assets custody to explain that if banks and regulators understand the scope of these activities, they can safely offer such services.

The Fed chairman also acknowledged that integrating digital assets into the regulatory framework of traditional finance is quite complex, calling for a more comprehensive regulatory structure.

At the press conference following the Federal Open Market Committee meeting in February this year, the Fed Chairman stated that although the threshold for banks to participate in crypto assets business remains high, the Fed does not intend to cut off banking services to legitimate digital asset companies.

Meanwhile, discussions surrounding stablecoin legislation continue, and the use of stablecoins in payments and digital settlements continues to grow. Last year, the transfer amount of stablecoins approached 14 trillion dollars, surpassing that of a well-known payment company.

The statement from the Fed Chairman indicates that the Fed supports Congress's efforts to establish formal rules for stablecoins, provided that such legislation can strike a balance between innovation and risk control.

There is currently no federal regulatory framework specifically for stablecoins, but several legislative proposals have been put forward in recent sessions of Congress. Among them, the most notable are the "GENIUS Act" and the "STABLE Act" proposed by the House of Representatives and the Senate, respectively.

The latest stance of the Fed indicates that as stablecoins become increasingly integrated into the global financial market, U.S. financial authorities are becoming more willing to participate in the formulation of digital asset policies.