A top Federal Reserve official warned Congress that it needed to pass legislation with strong crypto guardrails to prevent future financial-stability risks. Entities offering stablecoins -- cryptocurrencies pegged to a separate asset -- are an urgent risk that must be addressed, because they’re backed by the dollar and “really borrow the trust of the Federal Reserve,” Fed Vice Chair for Supervision Michael Barr said Wednesday before the US House Financial Services Committee. It’s “important for Congress to step in and say you’re not permitted to offer a stablecoin unless it’s done under a strong prudential framework ... (full story)