Stablecoins carry consumer risk: panel

Core Insights - The Genius Act, which provides a federal legal framework for stablecoins, has critical gaps that need to be addressed for consumer acceptance of digital currencies [1][2][3] - There is significant interest from financial institutions and corporations in stablecoins, but concerns about regulatory frameworks and consumer protections remain [2][4] Regulatory Framework - Experts emphasize the need for a comprehensive regulatory framework to ensure consumer protections similar to those for debit transactions [3][4] - The lack of a robust regulatory framework could hinder the adoption of stablecoins among consumers [3][4] Compliance and Risk Management - Financial regulators face numerous questions regarding compliance and risk management before stablecoins can gain consumer confidence [5][6] - Key regulatory questions include fraud mitigation, redemption processes, issuer obligations, and complaint handling [6]