The issue of stablecoin regulation is becoming increasingly discussed, considering potential threats and challenges in the form of financial instability and misuse.

Christopher Waller's Declaration

At the Vienna Macroeconomics Workshop on October 18, Federal Reserve Governor Christopher Waller compared decentralized and centralized finance, asserting that the former cannot completely replace the latter. He also underscored potential threats and regulatory challenges of stablecoins, suggesting that appropriate regulations could address them.

Janet Yellen's Position

U.S. Treasury Secretary Janet Yellen and Senator Elizabeth Warren have long pushed for stablecoin regulation. In February 2024, Yellen urged Congress to provide federal authority to regulate stablecoins and their issuers. Yellen believes that new stablecoin legislation could enhance financial stability and tighten consumer protection.

Senator Elizabeth Warren's View

In a letter to Yellen, Senator Warren pointed out the importance of including anti-money laundering policies in stablecoin legislation. Warren highlighted the urgency of implementing new regulations in light of rising threats from cryptocurrencies and the use of digital assets by terrorist groups.

Stablecoin regulation remains a crucial topic among lawmakers and economists, who aim to find a balance between innovation and the security of the financial system.