Fed's Michael Barr highlights need for robust stablecoin oversight

Federal Reserve Vice Chair of Supervision Michael Barr said Wednesday that it's important for the U.S. to have strong oversight of stablecoins, or digital representations of more "stable" assets such as the U.S. dollar ( DXY ). In his view, stablecoins are "a form of private money," which "can generate significant run risks and financial stability risks if not strongly and appropriately regulated," he said in response to a question during an appearance before the Committee on Financial Services. The President's Working Group, for instance, has explored the risks and benefits of stablecoins, though there's still no singular regulatory regime overseeing the emerging space. "It's critical that we have a strong federal oversight of approval of stablecoins," Barr added. The stablecoin market cap stood at $146.41B at the time of writing, with tether ( USDT-USD ) ($66B) and USD Coin ( USDC-USD ) ($44.9B) accounting for roughly 75% of that total value, according to CoinMarketCap data . In October, Congressman Jim Himes said stablecoin bill won't pass any time soon .