Fed Chair Speaks: A regulatory framework for stablecoins is imperative, and interactions between banks and digital asset businesses may be relaxed.

The Fed chairman recently delivered a speech in Chicago, reiterating the necessity of establishing a regulatory framework for stablecoins, while also stating that the Fed does not intend to restrict the interaction between the banking industry and the digital asset sector.

In a speech on April 16, the Fed chairman pointed out that given the increasing importance of digital tools such as stablecoins, both houses of Congress are working hard to establish a legal framework for them. He believes that it is essential to establish a corresponding regulatory system.

The Fed chairman mentioned that, although previous cooperation with Congress on the stablecoin legal framework was unsuccessful, he noted that "the situation is changing," and legislators are now showing renewed interest in formally establishing regulatory guidelines.

He emphasized that such a framework should include consumer protection measures and ensure transparency. He added: "Stablecoins are a digital product that can actually have quite broad appeal."

Regarding bank operations related to digital assets, the Fed chairman acknowledged that U.S. banking regulators, including the Fed, have taken a conservative approach in providing guidance on how banks should manage their exposure to digital assets.

However, he stated that as long as consumer rights and financial security can be guaranteed, some of these guidelines may be relaxed to accommodate responsible innovation. He said: "We will try to adjust in a way that maintains the safety and soundness of the financial system."

These remarks further elaborate on the earlier statement by the Fed chair, indicating that the Fed has no intention of preventing banks from serving legitimate digital asset clients.

Earlier this year, the Fed chairman stated clearly during his testimony in Congress that digital asset activities have taken place within banks regulated by the Fed under the established regulatory framework. He cited digital asset custody as an example, explaining that if banks and regulators understand the scope of these activities, they can safely conduct such services.

The Fed chairman also acknowledged that integrating digital assets into the regulation of traditional finance is quite complex, calling for the establishment of a more comprehensive regulatory framework.

At a press conference in February, the Fed Chairman stated that although the threshold for banks to participate in digital asset business is still very high, the Fed does not intend to cut off banking services for legally operating digital asset companies.

At the same time, the use of stablecoins in payments and digital settlements continues to grow. Last year, the transfer amount of stablecoins approached $14 trillion, surpassing a well-known payment company.

The statement from the Fed Chairman indicates that the Fed supports Congress's efforts to establish formal rules for stablecoins, provided that such legislation can strike a balance between innovation and risk control.

Currently, the United States has not established a federal regulatory system specifically for stablecoins, but recent sessions of Congress have proposed several legislative initiatives. The most notable are the "GENIUS Act" and the "STABLE Act" proposed by the House and the Senate, respectively.

The Fed's latest stance indicates that as stablecoins increasingly integrate into the global financial markets, U.S. financial authorities are becoming more willing to participate in the formulation of digital asset policies.