"Federal Reserve Warns of Financial Risks Posed by Private Crypto Stablecoins"

The Federal Reserve's top bank watchdog, Michael Barr, expressed concerns about private crypto stablecoins, stating that they could pose a stability risk to the US financial system if not regulated properly. Barr emphasized the need for strong federal regulation that allows the Federal Reserve to approve, regulate, and enforce against stablecoin issuers. He also highlighted the importance of Congress determining the rules of the road for stablecoins. Barr reiterated the Fed's commitment to taming US inflation and mentioned that the central bank continues to study technologies for a digital currency backed by the Fed. Another banking regulator, Michael Hsu, made a distinction between crypto and tokenization, stating that while the former is plagued by fraud, the latter holds promise in solving actual problems in finance.