Cleveland Fed President Beth M. Hammack stated that the use of stablecoins by AI agents for payments would represent a significant shift in financial operations. She highlighted that stablecoins enable smart contracts and agentic workflows, allowing AI to conduct transactions autonomously without human intervention.
Speaking at the SNB and Its Watchers Conference on November 5, 2026, Hammack noted that increased demand for stablecoins could boost demand for US dollar assets, as most stablecoins are pegged to the dollar. This could potentially influence inflows into US Treasuries, though the global impact remains uncertain.
Hammack warned that current US regulations are not equipped to handle the complexities of smart contracts and autonomous AI payments. While the GENIUS Act, signed in July 2025, establishes a framework for payment stablecoins, new federal rules are not expected to take effect until January 2027.
The official emphasized that existing payment laws do not address issues of responsibility, compliance, and oversight regarding autonomous agent transactions. She expressed skepticism about other volatile crypto assets serving as dollar alternatives, reaffirming the dollar's status through market liquidity and Fed independence.
