Vice President Candidate fed During hearings in the Senate, Michael Barr highlighted the importance of establishing a regulatory framework for stablecoins. If approved, it will focus on the tasks of banking regulation.

Barr addressed the need to mitigate risk for financial stability. According to him, cryptocurrencies have “the potential for growth based on economic benefits” but carry “some significant risks”. In particular, the possibility of panic among “stablecoin” holders.

The main task in the regulation of digital assets was called the protection of investors, which is the prerogative of the candidate other agencies. Barr reacted to Senator Elizabeth Warren’s comment, which brought up the issue of Terra’s collapse.

In addition to stablecoins, the responsibilities of the Fed Vice Chairman include: CBDC. For Barr, issuing the digital dollar is an issue that needs “scrutiny”.

Earlier, Fed Chairman Jerome Powell stated that it is important that the US does the CBDC with the right approach, not the first to issue it.

Recall that US President Joe Biden proposed the nomination of Michael Barr for the role of Fed Vice Chairman in April 2022.