Federal Reserve Governor Christopher Waller shared optimistic remarks on stablecoins today. The Fed official believes that stablecoins could help the Fed’s policy to spill over to nations that are more embracing of dollar-backed digital currencies.
Fed Governor Shares Views On Stablecoins
At the event in Croatia on Sunday, Waller likened stablecoin adoption to the fixed exchange-rate system.
“Countries that adopt it, it’s like a fixed exchange rate system,” Fed’s Waller said. He added, “You are going to import US monetary costs, so it’s broadening the reach of US monetary policy in countries that use more stablecoins.”
For context, Waller has been pro-stablecoin in the past. Earlier, he said that stablecoins could help increase the U.S. dollar’s dominance in the world economy if they are well-regulated.
Earlier, the Fed governor also lashed out on CBDCs. CBDC is a “solution in search of a problem,” Waller said. He further added that there’s literally nothing that “requires a CBDC and only a CBDC to fix.”
Fed’s Waller added that “almost every major central bank in the world has just stopped” pursuing CBDCs because the officials “just can’t find a reason for this.”
On the other hand, JPMorgan Chief Executive Jamie Dimon made anti-stablecoin comments. He stated that banks will be fighting against the current version of the CLARITY Act even after it passed the Senate Banking Committee. He is opposing stablecoin rewards language in the new version.
Dimon said in a recent interview that he will fight it and “if we lose, we will live.” He has denied the notion that banks are afraid of crypto competition.
He added that crypto companies should be subjected to the same regulations as banks if they take deposits from their customers and engage in comparable financial services.
US Crypto Market Structure Bill Competes In Busy Congressional Calendar
Meanwhile, Waller’s remarks follow the continued efforts by lawmakers to advance the CLARITY Act in Congress. Galaxy Digital CEO Mike Novogratz urged the need for the legislation on X. His message reads, “June is ‘Clarity’ month. It’s literally now or never.”
Senator Cynthia Lummis also has pushed Congress toward the crypto legislation. She recently connected the bill to President Donald Trump’s crypto agenda. Moreover, Lummis urged both parties to “get the bipartisan Clarity Act to his desk.”
Also, she said she expects a Senate floor vote this summer. However, there are timing issues with the law. Work on a reconciliation package will not be put on hold, Senate Majority Leader John Thune told Republicans, but will be extended into June.
Crypto journalist Eleanor Terrett pointed out that the CLARITY Act will be vying for Senate floor time with major Congress priority tasks. These involve reconciliation discussion, bills related to FISA, as well as a House-passed housing package.
“This means the Clarity Act will now be competing for floor time in June,” Terrett wrote. There are only four working weeks in June and three in July, she said, before Congress sets off on its August recess.
On May 14, the Senate moved forward with a bipartisan 15-9 vote on the CLARITY Act.
Source: https://coingape.com/fed-gov-eyes-stablecoins-to-expand-us-policy-reach-amid-clarity-act-push/
