Fed’s Powell urges broader regulation for stablecoins

By CHRISTOPHER RUGABER
AP Economics Writer

WASHINGTON (AP) — Federal Reserve Chair Jerome Powell said that stablecoins will need greater regulation as they become more widely used by consumers. Powell delivered his virtual remarks Tuesday to a conference on digital finance in Paris. Powell said the Fed hasn’t yet decided on whether to proceed with a digital dollar. The Fed’s sharp interest rate increases this year, Powell said, have contributed to the collapse of some stablecoins and big drops in the value of cryptocurrencies. Stablecoins are digital tokens pegged to the value of traditional financial instruments, often the dollar.