[ad_1]
U.S. Treasury Secretary Janet Yellen told financial regulators the government needs to act quickly to establish a regulatory framework for stablecoins.
The comments came at Monday’s meeting of the president’s financial markets task force. The group discussed the rapid growth of stablecoins, revealing plans to issue regulatory recommendations in the coming months, according to Reuters.
The group also deliberated on stablecoins as a means of payment, the possible risks to end users, and their wider impact on the U.S. financial system and national security.
In February, Yellen warned that the misuse of crypto assets was a growing problem alongside cyber attacks triggered by the global pandemic. At the time, she recognized the promise of these new technologies but also cautioned against her view of reality, stating that “cryptocurrencies have been used to launder the profits of online drug traffickers; they have been a tool for financing terrorism.
Circle co-founder and CEO Jeremy Allaire called the meeting “very important”, commenting that stablecoins are here to stay and likely to become key parts of the global economic and financial system:
“It is extraordinary and positive that America’s financial policy leaders are addressing this at this time. It’s a sign of how far we’ve come and how fast it is all happening.
1/14 VERY important meeting today with the meeting of the Presidential Working Group to discuss the appropriate policy and oversight of private stablecoins. Lots to say about it, @SecYellen, @ federal reserve , and @USOCC teams.
– Jeremy Allaire (@jerallaire) July 19, 2021
The growth of Stablecoin has been monumental this year as the demand for decentralized funding has increased. Circle’s USDC has been the best performer so far this year with a 577% increase in circulating supply to record highs of 26.4 billion according to CoinGecko.
Speaking on stablecoins last week, Federal Reserve Chairman Jerome Powell also stressed the need for a strong regulatory framework for stablecoins.
“If they are to be a significant part of the payments universe, we need a proper regulatory framework that, frankly, we don’t have,” he said.
Related: Fed chairman says stablecoins need tighter regulation, speaks on CBDC
As Cointelegraph reported earlier this month, the world’s most popular stablecoin, Tether, remains under scrutiny. On June 25, Federal Reserve Bank of Boston Chairman Eric Rosengren warned of Tether’s basket of reserve assets.
When the total stablecoin supply surpassed $ 100 billion in May, it raised alarm bells for financial regulators concerned about the lack of oversight of the industry, including the opacity surrounding how issuers of stablecoins. manage their reserves.
[ad_2]
Source link