The Federal Reserve Board of Governors: DeFi is nothing to be afraid of! Waller urges banks to embrace encryption and stablecoin innovation.

As the regulatory environment in the United States gradually shifts to support digital assets, Federal Reserve Board of Governors member Christopher Waller spoke to bankers and policymakers at the 2025 Wyoming Blockchain Symposium, saying, “DeFi is nothing to be afraid of.” He emphasized that decentralized finance is merely a new technology for transactions and record-keeping, and called for banks and regulatory agencies to work together to integrate encryption payments and stablecoins into the mainstream financial system.

Waller: DeFi is no different from everyday payments

Waller compared using stablecoins to purchase meme coins with using a debit card to buy apples in his speech, pointing out that the essence of both is the same:

1. All payments are made using digital currency.

2. Transaction records (receipts or decentralized ledgers) will be generated.

3. They are all technical extensions of existing payment logic.

He believes that smart contracts, tokenization, and distributed ledgers are just new payment tools and do not pose a threat.

The Federal Reserve Board of Governors’ regulatory attitude shifts to support innovation

Waller’s remarks continued the Federal Reserve’s recent open attitude towards encryption currencies:

April: Withdraw the 2022 guidelines restricting banks from participating in cryptocurrency and stablecoin activities

Last week: Ended the risk-based “New Activity Regulatory Program”

Vice Chairman Bowman: Suggest allowing Federal Reserve employees to hold a small amount of encryption to deepen understanding.

The outside world believes that Waller is a popular candidate to succeed Powell as the chair of The Federal Reserve (FED) in 2026, and his supportive stance on encryption may influence policy direction in the future.

The GENIUS Act Promotes Stablecoin Adoption

Waller praised President Trump’s signing of the “U.S. Stablecoin Guidance and National Innovation Act” (GENIUS Act) as an important step in promoting the adoption of stablecoins:

1. Helps stabilize the potential of stablecoins

2. Supporting the position of the US dollar in the international market

3. Improve the efficiency of retail and cross-border payments

4. Play a key role in countries with high inflation or limited access to US dollars.

The U.S. Department of the Treasury predicts that the stablecoin market will grow from the current $280 billion to $2 trillion by 2028, representing a 615% increase.

Meeting Minutes: Stablecoin Risks Need Continuous Monitoring

According to the Federal Reserve’s July meeting minutes:

1. Officials mentioned stablecoins multiple times (a total of 8 times)

2. Believe that payment stablecoins can enhance payment efficiency.

3. There may be an increase in demand for supporting assets such as U.S. Treasuries.

4. Attention should be paid to its potential impact on banks, the financial system, and monetary policy.

At the same time, Atlanta Federal Reserve President Bostic stated that the current scale of cryptocurrencies is still not sufficient to threaten financial stability, but as the market expands, regulation should remain forward-looking.

Conclusion

Waller’s remarks send a clear signal: the U.S. central bank is shifting from a defensive stance to embracing encryption innovation. With the implementation of the GENIUS Act and the rapid growth of the stablecoin market, the integration of Decentralized Finance and traditional banking may accelerate. For banks, this is both a challenge and a golden opportunity to seize the next generation of payment markets.