Fed flags stablecoin risks ahead of rules

Federal Reserve Governor Michael Barr has highlighted significant concerns surrounding stablecoins, particularly regarding their potential for facilitating money laundering and posing risks to financial stability. This warning comes as various regulatory agencies are in the process of developing new rules for the digital asset sector. Barr's remarks underscore the need for robust oversight to mitigate potential illicit activities and ensure the stability of the broader financial system as the market for stablecoins continues to evolve and grow.