US Federal Reserve Governor Christopher Waller reassured his colleagues and the private banking industry that there’s “nothing to be afraid of” regarding crypto payments existing outside the conventional banking framework.
“There is nothing frightening about this just because it takes place in the decentralized finance or DeFi space — this is merely new technology for transferring assets and documenting transactions,” he stated during a presentation at the Wyoming Blockchain Symposium 2025 on Wednesday.
Utilizing innovative technology to create new payment services isn’t a “novel concept,” Waller remarked as he urged policymakers and the private banking sector to collaborate on crypto payment infrastructure. “There is nothing to fear about employing smart contracts, tokenization, or distributed ledgers in daily transactions.”
Waller’s remarks mirrored the Fed’s ongoing shift towards accepting crypto and its prospective role in the US payments ecosystem. In April, it retracted guidance from 2022 that dissuaded banks from participating in crypto and stablecoin ventures.
Last week, the Fed concluded its risk-centered “novel activities supervision program” overseeing crypto-related functions, while Fed Vice Chair for Supervision Michelle Bowman on Tuesday suggested that staff members should be permitted to hold minor amounts of crypto to gain a better understanding of the technology.
Waller’s supportive stance on crypto could soon gain more influence, as he is viewed as a leading candidate to succeed Jerome Powell as Fed chair. Powell’s term concludes in May 2026 and can only be extended if he is reappointed by President Donald Trump and confirmed by the Senate. However, Trump has reportedly been pressuring Powell to step down.
Buying memecoins with crypto like purchasing apples with fiat: Waller
Waller noted that DeFi transactions operate under the same principles as regular debit card purchases, likening the use of stablecoins for purchasing a memecoin to tapping a debit card at a grocery store to buy an apple.
“I can visit the grocery store and buy an apple using a digital dollar in my checking account to settle the payment. I tap my debit card on a card reader to execute the transaction. Ultimately, the machine produces a receipt, which serves as the transaction record. The same procedure applies in the crypto realm.”
“I purchase a meme coin and utilize a stablecoin as the payment method. The transaction is executed via a smart contract. Finally, the transaction is logged on a distributed ledger.”
GENIUS bill an “important step” for stablecoin adoption
The recent enactment of the Guiding and Establishing National Innovation for US Stablecoins Act was characterized by Waller as an “important step” for stablecoin adoption, emphasizing that it could facilitate stablecoins in reaching their “full potential.”
Related: US Treasury calls for public comment on GENIUS stablecoin bill
He pointed out that stablecoins could assist in preserving and enhancing the dollar’s international stature — especially in high-inflation nations or those with limited access to physical dollars — while improving retail and cross-border payments.
Stablecoin market projected to grow 615% by 2028
The current stablecoin market stands at $280 billion, which the US Treasury estimated in April would surge to $2 trillion by 2028.
The department affirmed its forecast by indicating that a stablecoin regulatory framework could significantly boost the demand for US Treasury bills.
Tether (USDT) and Circle’s USDC (USDC) currently dominate the stablecoin market, with market valuations of $167 billion and $67.5 billion, respectively, according to CoinGecko data.
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