PANews reported on April 1st, citing Bloomberg, that Federal Reserve Governor Michael Barr stated that stablecoins pose risks of money laundering and financial stability, and the quality and liquidity of their reserve assets are crucial to their long-term viability. He pointed out that stablecoin issuers have an incentive to maximize the returns on their reserve assets by expanding the risk spectrum. Barr also acknowledged the potential advantages of stablecoins in areas such as fund management, remittance transfers, and faster settlement capabilities than wire transfers.

Regulators such as the Federal Reserve are developing rules under the Genius Act requiring stablecoin issuers to formally register and hold dollar-to-dollar reserves. Barr stated that strict control over reserve assets, coupled with regulatory, capital, and liquidity requirements, could enhance the stability of stablecoins and make them more viable payment instruments, but success depends on the details of regulatory enforcement.