Fed governor claims stablecoins cannot replace banks – crypto industry questions why not?

Fed Governor Christopher Waller asserts that stablecoins can’t displace banks, citing structural limitations. His criticism of stablecoin interest accumulation sparked backlash from crypto leaders, who see it as a threat to innovation and financial inclusion.

Tensions heightened post-GENIUS Act adoption as crypto advocates argue that limiting stablecoin rewards threatens competition and market growth. Waller’s stance, viewed by some as pro-banking, faces increasing scrutiny amid the fast-evolving crypto landscape.