Waller, the popular candidate for Federal Reserve Chairman: Ethereum and stablecoins are the next step in payment development, and institutions should adopt

# Waller, a Top Contender for the Next Fed Chair, Expresses Optimism About Digital Assets, with Regulatory Frameworks Boosting Institutional Confidence

Author: Xu Chao  

Source: Wall Street CN  

Christopher Waller, a Federal Reserve Governor and leading candidate for the next Fed Chair, delivered an important speech in which he publicly expressed optimism about digital assets (especially Ethereum and stablecoins) and noted positive progress on the GENIUS Act. Observers believe this statement provides crucial policy support for the institutional adoption of digital assets such as stablecoins and Ethereum.  

On Thursday local time, Fed Governor Waller spoke at the 2025 Wyoming Blockchain Symposium.  

Waller praised Ethereum and stablecoins as the "natural next step" in the development of payment technology. He stated that smart contracts, tokenization, and distributed ledgers do not pose risks in daily use, and urged financial institutions to embrace cryptocurrencies as a natural progression in payment development.  

Regarding regulation, Waller described the GENIUS Act as a "good start" and pledged to address existing issues gradually as the Act is implemented.  

Waller’s stance—advocating for Ethereum and stablecoins to serve as foundational financial infrastructure—aligns with key regulatory bills passed in 2025. This statement has been interpreted by the market as a positive signal for the revaluation of cryptocurrencies.  

The GENIUS Act requires stablecoin issuers to hold high-quality liquid assets at a 1:1 reserve ratio, while the CLARITY Act clarifies the regulatory framework for digital commodities, eliminating regulatory uncertainty for institutional investors.  

## Regulatory Frameworks Boost Institutional Confidence  

The GENIUS Act took effect in July 2025, establishing the first federal regulatory framework for stablecoins in the United States.  

The Act mandates that stablecoin issuers hold high-quality liquid assets (such as U.S. Treasuries and cash) as reserves at a 1:1 ratio, and clarifies the supervisory responsibilities of banking regulators including the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC).  

To complement the GENIUS Act, the U.S. House of Representatives passed the CLARITY Act in July 2025, which further defines the jurisdictional boundaries between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).  

The CLARITY Act classifies non-stablecoin assets (e.g., Bitcoin and Ethereum) as "digital commodities" under CFTC oversight, eliminating regulatory ambiguity for asset management firms and institutional investors.  

This dual legislative framework has created a favorable environment for institutional adoption, driving rapid growth in Ethereum-based tokenized assets and Exchange-Traded Funds (ETFs).  

Regulatory clarity has directly spurred institutional investment in Ethereum and stablecoins.  

As of the third quarter of 2025, the assets under management (AUM) of Ethereum ETFs reached $27.6 billion, with inflows exceeding those of Bitcoin ETFs. BlackRock’s ETHA ETF attracted $10 billion in AUM within just 10 days of its launch.  

Corporate funds have also been reallocated to the Ethereum sector: over 64 companies invested $10.1 billion in staking and the tokenization of real-world assets (RWAs).  

Platforms such as BlackRock’s BUIDL and Franklin Templeton’s Progmat are leveraging Ethereum’s infrastructure to offer decentralized asset ownership, integrating traditional finance with the programmability of blockchain.  

Ethereum’s technical upgrades have further enhanced its appeal to institutional investors. After Ethereum completed two major upgrades—Pectra and Dencun—its gas fees (transaction fees) dropped by 90%.  

Lower fees have directly reduced the cost of operating decentralized finance (DeFi) applications on Ethereum, attracting more institutional capital. The total value locked (TVL) in DeFi reached $223 billion, with substantial funds flowing into decentralized financial products such as lending, staking, and liquidity pools.  

Ethereum’s dominant position in the stablecoin ecosystem has been further solidified: stablecoins issued and circulated on Ethereum account for 50% of the global market share.  

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