Federal Reserve Governor Michael Barr has called for stricter regulation and oversight of stablecoins, highlighting the risks they pose without effective control. Speaking on April 1, Barr warned that stablecoins could replicate issues historically associated with private currencies if not properly regulated. He emphasized the importance of enforcing the GENIUS Stablecoin Act, particularly in monitoring reserve assets and preventing illicit activities. Barr stressed that stablecoins must maintain par value redemption under all market conditions to be considered truly stable. He pointed out that during market stress or increased issuer risk, the liquidity and safety of reserve assets are crucial. Additionally, Barr noted that stablecoin issuers might be tempted to pursue higher yields, potentially increasing risks and threatening financial stability. The regulation of stablecoins remains a contentious issue in U.S. cryptocurrency legislation, affecting the progress of related bills.