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Federal Reserve officials conducted an extensive analysis of stablecoins during their July meeting, prompted by the recent passage of the GENIUS Act. The FOMC minutes reveal both recognition of potential efficiency benefits and significant concerns about financial system implications. This marks one of the Fed’s most comprehensive discussions to date on digital payment assets.
- FOMC members cited the GENIUS Act as a driver for expected growth in stablecoin usage under new federal regulations
- Officials expressed concerns about stablecoins' transparency compared to traditional money market funds and potential implications for monetary policy implementation
- The Fed recognized that stablecoin adoption could boost demand for US Treasury securities, which serve as primary collateral for most major stablecoins
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