Federal Reserve considers regulatory framework for stablecoins issued by non-banks

Officials from the Federal Reserve address the financial stability risks posed by non-bank stablecoins, especially their impact on lending in community banks. Unified oversight is suggested to counteract potential disruptions similar to those seen in previous financial crises.

The Community Depository Institutions Advisory Committee highlights the need for a regulatory framework that includes stablecoins to maintain credit availability for small and medium enterprises. Their aim is to prevent regulatory arbitrage and ensure financial system integrity.