Fed's outgoing Quarles ask regulators to show 'constraint' in digital asset rules

Federal Reserve Vice Chairman for Supervision Randal Quarles warns regulators not to stifle innovation when it comes to digital assets. "The Federal Reserve, and our fellow regulator, should welcome responsible innovation, and we should create a regulatory environment that not only allows for such innovation, but encourages it," he said, speaking about digital assets, in a speech, "Between the Hither and the Farther Shore: Thoughts on Unfinished Business." Quarles will leave the central bank at year-end, after handing in his resignation in November. Some of the President's Working Group on Financial Markets' proposals on stablecoins, "such as limiting wallet providers' affiliation with commercial entities," are unwarranted, he said. It's one thing to say that a stablecoin issuer, which he still considers as overkill, "it is, however, quite another thing to contemplate that wallet providers may need to be completely separated from commercial firms," he said. "It is not at all clear what regulatory interest