U.S. Treasury Secretary Janet Yellen (Janet Yellen) has asked regulators that regulate crypto assets to “act quickly to ensure that an appropriate U.S. regulatory framework is established for stablecoins”.
- The Office of Public Affairs of the U.S. Department of the Treasury announced on Monday the results of the Presidential Financial Markets Working Group (PWG) meeting, which was convened by Treasury Secretary Janet Yellen to discuss stablecoin regulation.
- The Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) attended the meeting held on Monday.
- “At the meeting, participants discussed the rapid growth of stablecoins, the potential use of stablecoins as a means of payment, and potential risks to end users, financial systems, and national security,” the announcement details, adding:
The Secretary of State emphasized the need to act quickly to ensure that an appropriate US regulatory framework is in place… The PWG expects to issue recommendations in the coming months.
- Present at the meeting were Yellen, Federal Reserve Chairman Jerome Powell, U.S. Securities and Exchange Commission Chairman Gary Gensler, CFTC Acting Chairman Rostin Behnam, FDIC Chairman Jelena McWilliams, Acting Currency Comptroller Michael J. Hsu, and Vice Chairman of the Federal Reserve. Randal Quarles and J. Nellie Liang, Deputy Minister of Domestic Affairs of the Ministry of Finance.
- Regulators around the world are increasing their supervision of stablecoins. For example, the Bank of England has stated that if stablecoins are widely used, stablecoin payments should be regulated in the same way as bank payments.
- Unlike cryptocurrencies such as Bitcoin, more and more regulators believe that stablecoins will bring financial stability risks. The President of the European Central Bank, Christine Lagarde, said in November last year that stablecoins, such as the cryptocurrencies supported by Facebook, could pose “serious risks.” If widely adopted, “they may threaten financial stability and monetary sovereignty,” she said.
- Last week, Fed Chairman Powell claimed that if you own digital US currency, you don’t need stablecoins or cryptocurrencies.
What do you think of Secretary of the Treasury Yellen’s request that regulators take prompt action on stablecoin regulation? Let us know in the comments section below.
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