Federal Reserve official Musalem advocates for stablecoins to be used strictly as payment tools, with restrictions preventing their use as interest-bearing savings products under the Genius Act.
On September 22, Federal Reserve official Musalem emphasized that under the Genius Act, stablecoins must not pay interest, stressing that they should remain as payment tools, not savings instruments. This policy aims to distinguish payment-focused digital assets from interest-bearing financial products.