Bank of New York Mellon Executives Call for Clarification of Stablecoin Regulatory Framework

At a recent US congressional hearing, Caroline Butler, global head of digital assets at BNY Mellon, stressed that the Traditional Financial Institution Group already provides important services to stablecoin issuers such as Circle (USDC), but the industry urgently needs a clear regulatory framework from the US government. "It is critical for the ecosystem to ensure that custodian banks protect client assets in accordance with federal regulations, which is fundamental to building trust in the market," Butler said. She also pointed out that the Traditional Financial Institution Group wants to participate in emerging areas such as stablecoins and blockchain technology to meet the changing needs of the market and customers.
At the hearing, Guynn, a well-known Wall Street bank compliance lawyer, also said that if a stablecoin issuer holds sufficient liquid asset reserves and capital buffers as required by the STABLE Act, and has no significant liabilities, its payment of stablecoins should be as safe as bank deposits and central bank currencies.