Fed Official Sounds Alarm: Gaps in Stablecoin Regulation Risk Financial History Repeating, Safe Redemption Key

A Federal Reserve governor warns that stablecoins require robust oversight to avoid repeating the problematic history of private money. True stability depends on reliable redemption at face value under all market conditions. Issuers' profit motives could lead to risky reserve management, posing threats to financial stability, while regulatory disagreements stall U.S. legislation.

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