- Federal Reserve Governor Christopher Waller believes stablecoins can enhance the US dollar’s global influence.
- He calls for a clear regulatory framework to allow banks and non-banks to issue stablecoins safely.
Federal Reserve Governor Christopher Waller is bullishly optimistic about the future of stablecoins. In San Francisco on February 12, he called them an “important innovation” that could shake up how we handle payments like daily store payments and across borders.
He stated, “An important innovation for the crypto ecosystem with the potential to improve retail and cross-border payments.” What’s particularly striking is hearing this kind of enthusiasm from a Federal official. Waller sees these digital dollars as a way to potentially boost the US dollar’s influence worldwide.
But he’s not getting carried away, he’s quick to point out that we need solid rules of the road to keep things safe and stable. It’s refreshing to hear a balanced take from someone at his level, acknowledging both the potential and the precautions needed.
In the same vein, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) are discussing how to collaborate on cryptocurrency regulation as digital assets become increasingly important to regulators.
🚨SCOOPLET: With digital assets becoming a top priority for regulators, the @SECGov and @CFTC are currently discussing ways in which they can effectively collaborate on #crypto regulation, @FoxBusiness has learned.
One idea is to reinstate the charter for the CFTC-SEC joint… pic.twitter.com/5vJGhHyMro
— Eleanor Terrett (@EleanorTerrett) February 13, 2025
The Potential of Stablecoins
Stablecoins are cryptocurrencies that are tied to the value of another currency, commodity, or financial instrument. They are designed to be a more reliable alternative to the volatility of other cryptocurrencies. Some of them include Tether (USDT) and USD Coin (USDC).
Waller noted their current uses, including providing a safe store of value for crypto trading, enabling access to US dollars in high-inflation countries, and improving international and retail payments. He also pointed out that private companies are exploring ways to make stablecoins more useful for everyday transactions.
Despite their potential, Waller acknowledged challenges. The lack of a clear regulatory framework in the US, along with differing state and international rules, creates uncertainty. He also highlighted risks like “depegging” (when stablecoins lose their dollar peg) and market failures.
A Call for Clear Regulation
Waller called for a regulatory framework that allows both banks and non-banks to issue stablecoins while ensuring safety and encouraging competition. “I believe in the power of the private sector to develop solutions that benefit businesses and consumers,” he said, adding that the public sector’s role is to create fair rules for market participants.
He described stablecoins as “synthetic dollars” that function like commercial bank money but offer new possibilities for faster, cheaper, and more accessible payments. “If they can drive down costs, make things faster, and broaden the reach of the payment system, I’m all for it,” he said.
Looking at the big picture, Waller’s making a pretty compelling case. He sees stablecoins as game-changers in finance, but he’s also being realistic. We can’t just let them run wild without proper guardrails. His perspective shows how the conversation around digital currencies is maturing at the highest levels of finance.