Federal Reserve officials discussed stablecoins extensively during their July meeting, focusing on the potential impacts on the financial system after the passage of the GENIUS Act. The officials mentioned payment stablecoins as a driver for growth in stablecoin usage and recognized benefits for payment system efficiency, but also raised concerns about broader financial system implications. Fed Chair Jerome Powell has called for a regulatory framework for stablecoins and acknowledged their potential appeal. Fed officials are preparing for increased stablecoin adoption under the new regulatory framework and conducting a comprehensive risk assessment of potential market developments.
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