While Fed Governor Lisa Cook attempts to argue against her dismissal in court, the central bank said it will hold an October event to address innovation in payments.
The US Federal Reserve Board has scheduled a conference to discuss topics related to payments, including stablecoins and tokenization.
In a Wednesday notice, the Fed said the Oct. 21 conference would address “emerging stablecoin use cases and business models” as well as “tokenization of financial products and services” as part of efforts to innovate US payments systems.
Though the announcement came from the entire Fed board, Governor Christopher Waller, rather than Chair Jerome Powell, provided comments on the event.
“Innovation has been a constant in payments to meet the changing needs of consumers and businesses,” said Waller. “I look forward to examining the opportunities and challenges of new technologies, bringing together ideas on how to improve the safety and efficiency of payments, and hearing from those helping to shape the future of payments.”
The exploration of stablecoin use cases was likely a nod to the passage of the GENIUS Act in July. The bill establishing a framework for payment stablecoins requires the US Treasury and Fed to issue regulations before implementation.
Related: Trump picks top economic adviser to temporarily fill crucial US Fed seat
Challenges to the Fed’s independence
The conference was announced amid widespread concerns about the Fed’s independence as US President Donald Trump attempts to fire Governor Lisa Cook over claims of mortgage fraud. Cook said she would not step down and filed a lawsuit to block Trump’s actions.
About 600 economists penned an open letter on Tuesday, reminding the administration that “no Governor should be removed absent a clear, documented ‘for cause’ basis that would withstand judicial scrutiny,” warning of challenges to the Fed’s independence.
“Weakening that standard increases monetary policy uncertainty and forces markets to price political risk into interest rates, raising those rates and costs for families and businesses,” said the letter. “Elected officials should refrain from rhetoric or actions that erode the Federal Reserve’s independence […].”
Cointelegraph reached out to the Fed for comment but had not received a response at the time of publication.
Though Cook’s case is still moving through US courts, many legal experts have already weighed in on the matter since Trump repeatedly signaled his wish to remove Powell before his term expires in 2026.
An earlier Supreme Court opinion expanded presidential powers over agencies previously considered independent from the presidency, but said the Fed was a “uniquely structured, quasi-private entity,” signaling that any removal of its leadership had to be “for cause.”
Magazine: Can privacy survive in US crypto policy after Roman Storm’s conviction?
