FDIC to Propose New Stablecoin Regulatory Framework
The Federal Deposit Insurance Corporation is preparing to introduce a new regulatory framework for stablecoin applications by the end of the month. Acting Chairman Travis Hill will outline the proposal in upcoming testimony before the House of Representatives, emphasizing the need to integrate digital assets into the financial system without compromising stability.
Stablecoins have surged in popularity, prompting regulators to address the lack of clear oversight. Hill's testimony is expected to focus on creating guardrails that foster innovation while protecting investors. "Our priority is ensuring financial integrity alongside technological progress," he will state, according to prepared remarks.
The move comes as institutional interest in cryptocurrency reaches new highs. Regulatory clarity could accelerate adoption by traditional financial entities while mitigating risks associated with the rapidly evolving digital asset space.
