US Fed Governor Christopher Waller, previously critical of cryptocurrencies, now expresses optimism about dollar-pegged stablecoins.
Addressing a conference in Nassau, Bahamas, Waller highlighted the potential of decentralized finance (DeFi) to strengthen dollar dominance. He emphasized that stablecoins pegged to the US dollar, such as Tether (USDT) and USD Coin (USDC), contribute to the USD’s global influence.
Waller noted that approximately 99% of stablecoin market capitalization is linked to the US dollar, effectively making crypto-assets traded in USD. He believes that any expansion of DeFi trading will reinforce the dominant role of the dollar.
This stance contrasts with Waller’s previous warnings to crypto investors in February 2023, during which he cautioned about the speculative nature of cryptocurrencies and the risk of losing entire investments.
In the legislative arena, there’s progress on stablecoin regulation in the US. Representative Maxine Waters indicated that a stablecoin bill is nearing agreement after negotiations with House Financial Services Committee Chair Patrick McHenry for over 20 months.
Circle’s CEO Jeremy Allaire also expresses optimism about US stablecoin legislation, citing momentum and a good chance of seeing such legislation this year.
Moreover, jurisdictions worldwide are embracing cryptocurrencies to foster innovation while implementing regulatory safeguards. Singapore, for example, has established a regulatory framework for stablecoins, applicable to single-currency stablecoins (SCS), demonstrating a proactive approach to crypto regulation.
