Deep Tide TechFlow News, April 1st, reports that Federal Reserve Board member Michael Barr warned in a prepared speech at the Federalist Society that stablecoins pose potential risks related to money laundering and financial stability. Barr pointed out that the quality and liquidity of stablecoin reserve assets are crucial to their long-term viability, but issuers have the motivation to maximize reserve returns by expanding risk exposure. Currently, relevant banking regulators are actively working on developing stablecoin regulatory rules.

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