Federal Reserve Governor Christopher Waller has urged key personalities within the U.S. financial space to approach DeFi and crypto without fear. Waller believes that the digital assets are here to stay and will continue to drive advancement in the U.S. payments system.
The Fed chief emphasized that there is nothing alarming about smart contracts, distributed ledgers, and crypto transactions being conducted outside the corridors of mainstream finance.
Speaking at the Wyoming Blockchain Symposium 2025, Waller explained that decentralized finance is simply a new technology that is effective for everyday transactions.
There is nothing scary about this, just because it occurs in the decentralized finance or DeFi world — this is simply new technology to transfer objects and record transactions.
He mentioned that the use of innovative tech to launch new payment systems isn’t a new script. Waller also encouraged stakeholders within the banking sector to join forces in advancing the digital asset payment framework.
His statements come amid the Fed’s change in its stance regarding crypto assets and their position within the U.S. financial space. In April, the agency withdrew its 2022 guidance blocking banks from conducting crypto and stablecoin activities.
On Friday, the Fed also announced the dissolution of its special oversight program, which was initially formed to monitor crypto-based activities by banks. Fed Vice Chair for Supervision Michelle Bowman even advised staff of the agency to purchase digital assets to better familiarize themselves with blockchain technology.
According to Waller, crypto and DeFi transactions mirror everyday debit card transactions, with memecoin purchases using stablecoins as easy as paying for groceries with a bank card.
I buy a meme coin and use a stablecoin as the means of payment. The transaction takes place using a smart contract. Finally, the transaction is recorded on a distributed ledger.
The Fed chief also touched on the recent Guiding and Establishing National Innovation for U.S. Stablecoins Act, noting that the recent approval is a crucial move in driving stablecoin growth. He further stressed that this “important step” could aid fiat-pegged crypto coins in reaching “their full potential.”
As per CoinMarketCap, the stablecoin market valuation currently stands at $287 billion, with trading volume at over $172 billion. Tether’s USDT and Circle’s USDC currently lead the sector with market caps of $167 billion and $67.5 billion, respectively.
Here are the other fiat-pegged crypto coins that make up the top ten:
A few months ago, the U.S. Treasury projected the stablecoin sector to hit $2 trillion by 2028. According to the department, a stablecoin regulatory framework could also drive the demand for U.S. Treasury bills.
Meanwhile, Waller noted that fiat-pegged crypto assets could help cement and further boost the traditional dollar’s position as a global currency. He explained that stablecoins could serve as a medium of everyday transaction in inflation-ridden countries or areas with restricted access to physical dollars, while driving cross-border crypto transactions.
