Stablecoins at the Center of the US Dollar Hegemony War...JPMorgan Blocks While the Fed Surprisingly 'Approves'

▲ Stablecoin/ChatGPT generated image

As a Federal Reserve official publicly mentioned stablecoins as a means to expand the influence of US monetary policy, congressional discussions surrounding the CLARITY Act (US cryptocurrency market structure bill) have once again emerged as a key market variable.

According to cryptocurrency media outlet Coingape on June 1 (local time), Federal Reserve Governor Christopher Waller expressed a positive view on stablecoins that day. Waller believes that the effects of the US Fed's policies could spread to countries that actively adopt dollar-based digital assets.

Waller likened the adoption of stablecoins to a fixed exchange rate system at an event in Croatia on Sunday. He stated, “Countries adopting them are similar to those with a fixed exchange rate system,” adding, “They import the monetary costs of the United States, and the influence of US monetary policy expands in countries that use more stablecoins.” Waller had previously stated that if regulations are properly established, stablecoins could enhance the dominance of the US dollar in the global economy.

Waller maintained a critical stance on Central Bank Digital Currencies (CBDCs). He described CBDCs as “a solution looking for a problem,” stating, “There are virtually no problems that only CBDCs can solve.” He also pointed out that most major central banks worldwide have stopped pursuing CBDCs, and officials “cannot find the reason why.”

In contrast, JPMorgan CEO Jamie Dimon opposed the current US cryptocurrency market structure bill. Dimon stated that the banking sector would fight even after the bill passed the Senate Banking Committee. In a recent interview, he said, “We will fight, and if we lose, we will accept it,” arguing that cryptocurrency companies that receive customer deposits and provide similar financial services should be subject to the same regulations as banks.

In Congress, pressure is mounting over the processing of the US cryptocurrency market structure bill. Galaxy Digital CEO Mike Novogratz stated on X (formerly Twitter), “June is the month of ‘Clarity’. It’s literally now or never.” Senator Cynthia Lummis linked the bill to US President Donald Trump’s cryptocurrency agenda, urging both parties to send the bill to Trump. Eleanor Terrett noted that the US cryptocurrency market structure bill must compete with appropriation bills, FISA-related bills, and the House-passed housing package on the Senate floor schedule in June. The Senate advanced the US cryptocurrency market structure bill on May 14 with a bipartisan vote of 15 in favor and 9 against.

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