{"id":375560,"date":"2021-12-02T22:15:00","date_gmt":"2021-12-02T19:15:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/feds-quarles-says-regulators-should-show-constraint-on-stablecoins-to-avoid-hampering-innovation\/"},"modified":"2021-12-02T22:15:00","modified_gmt":"2021-12-02T19:15:00","slug":"feds-quarles-says-regulators-should-show-constraint-on-stablecoins-to-avoid-hampering-innovation","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/feds-quarles-says-regulators-should-show-constraint-on-stablecoins-to-avoid-hampering-innovation\/","title":{"rendered":"# Fed’s Quarles says regulators should show ‘constraint’ on stablecoins to avoid hampering innovation"},"content":{"rendered":"

“# Fed’s Quarles says regulators should show ‘constraint’ on stablecoins to avoid hampering innovation <\/strong>”
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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.<\/p>\n

In a prepared statement for his speech at the American Enterprise Institute on Dec. 2, Quarles expressed<\/a> 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 app<\/a>roaches on stablecoin regulation from the President’s Working Group on Financial Markets\u2019 November report are unnecessary, including \u201climiting wallet providers’ affiliation with commercial entities.\u201d<\/p>\n

\u201cIt is one thing to say that a stablecoin issuer itself must be a regulated bank \u2014 I think that is probably overkill, as there are perfectly effective ways for nonbanks to meet our legitimate regulatory concerns, but there is at least a clear relation between the existing framework of bank regulation and the specific measures that stablecoin issuers must address to operate safely,\u201d said Quarles. \u201cIt is, however, quite another thing to contemplate that wallet providers may need to be completely separated from commercial firms.\u201d\u00a0The fed governor added:<\/p>\n

\u201cIt is not at all clear what regulatory interest would be furthered by such a limitation, which is much more restrictive than we require for nondigital assets.\u201d<\/p><\/blockquote>\n

On Nov. 8, Quarles resigned his position at the Federal Reserve where he had been serving since 2017. He will remain on the Board of Governors until the end of December, at which point there will likely be three open seats for the group of seven regulators. <\/p>\n

During his time at the Fed, Quarles said that federal agencies needed to consider the right regulatory approach before creating a framework to oversee the crypto market. Prior to the 2017 bull run, he claimed that wide-scale usage of cryptocurrencies could pose \u201cserious financial stability issues,\u201d suggesting that the government partner with banks to create solutions for digital payments.<\/p>\n

\u201cWhile digital asset-related activities may be novel, regulators need not treat these activities differently simply because of the nature of the technology<\/a>,\u201d said Quarles in his Thursday speech. \u201cWe must focus with care on the unique risks posed by these activities and avoid unnecessarily impeding their promise.\u201d<\/p>\n

Related: <\/em><\/strong>Biden is considering law professor, Fed president, and former CFPB director to fill 3 seats on Federal Reserve: Report<\/em><\/strong><\/p>\n

U.S. President Joe Biden has not yet announced his picks for the Fed’s empty seats, but said<\/a> in November he planned to nominate replacements with a focus on “improving the diversity in the Board\u2019s composition.” He has already said Jerome Powell is his pick to remain Fed chair after his first term expires in February, with governor Lael Brainard to serve as vice-chair after the departure of Richard Clarida. <\/p>\n