Federal Reserve Governor Christopher Waller delivered remarks at the Wyoming Blockchain Symposium on Wednesday, urging banking executives and policymakers to embrace decentralized finance (DeFi) and stablecoin innovations. He stated that there is “nothing to be afraid of” when these technologies are viewed as new methods for transferring value and recording transactions. By drawing parallels to everyday debit card usage, Waller emphasized that smart contracts and tokenized assets simply represent an evolution of familiar payment processes.
Waller’s speech outlined the Federal Reserve’s recent policy shifts toward crypto. In April, the Fed withdrew its 2022 guidance that discouraged banks from engaging in stablecoin and crypto activities. He noted the conclusion of the “novel activities supervision program,” which had imposed extra scrutiny on crypto-related operations. Additionally, Fed Vice Chair for Supervision Michelle Bowman advocated for allowing staff to hold small crypto positions to better understand the technology. These developments, Waller argued, signal a pivot from caution to constructive engagement with digital assets.
The governor highlighted the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act as a pivotal legislative milestone. Signed into law earlier this year, the GENIUS Act establishes reserve and compliance requirements for issuers, enhancing consumer protections and fostering market stability. Waller described the act as an “important step” toward unlocking the full potential of stablecoins in domestic and cross-border payments, especially in high-inflation jurisdictions and regions with limited access to physical dollars.
Waller further speculated on his own future role, noting that his pro-crypto stance has positioned him as a leading candidate to succeed Jerome Powell as Fed chair in May 2026. He remarked that increased regulatory clarity and innovation could bolster the US dollar’s global role, with stablecoins serving as a complement to central bank digital currency (CBDC) initiatives. He cited Treasury estimates forecasting stablecoin market growth from $280 billion today to $2 trillion by 2028, driven by integration with on-chain and off-chain financial infrastructure.
In closing, Waller encouraged collaboration between the private banking sector and policymakers to develop robust technology frameworks. He compared buying a memecoin with stablecoins to tapping a debit card for an apple at a grocery store, underscoring the functional equivalence. By advocating for a measured, innovation-friendly approach, Waller signaled the Fed’s readiness to guide and supervise the next phase of financial technology evolution, balancing risk management with growth opportunities in the crypto ecosystem.
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