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Fed's Quarles says regulators should show 'constraint' on stablecoins to avoid hampering innovation

Published 12/02/2021, 02:15 PM
Updated 12/02/2021, 04:20 PM

Speaking publicly for the last time as a member of the Board of Governors of the Federal Reserve System, Randal Quarles urged regulators to exercise restraint on stablecoins.

In a prepared statement for his speech at the American Enterprise Institute on Dec. 2, Quarles expressed concern that regulations could hamper innovation in the digital asset space, particularly when it comes to stablecoins. According to the Fed governor, some of the approaches on stablecoin regulation from the President's Working Group on Financial Markets’ November report are unnecessary, including “limiting wallet providers' affiliation with commercial entities.”

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