The Federal Reserve’s former vice chair for supervision laid out an exhaustive list of regulatory risks tied to stablecoins and the coming implementation of the GENIUS Act this morning. The remarks from Gov. Michael Barr, a Biden appointee, could form a floor for Democratic priorities in future stablecoin safeguards.
Barr said he sees a lot of upsides in stablecoins as a financial technology. But he warned the regulatory design would be crucial in limiting their systemic risk. “Caution is warranted because of the long and painful history of private money created with insufficient safeguards,” Barr said.
