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U.S. Treasury Secretary Janet Yellen will call a meeting with the Biden administration’s financial markets task force to discuss the regulation of stablecoins. “With the rapid growth of digital assets, it’s important that agencies work together to regulate this industry and develop any recommendations for new authorities,” Yellen said.
US government discusses Stablecoin regulation
U.S. Treasury Secretary Janet Yellen on Friday announced plans to discuss the regulation of stablecoins. She will convene a July 19 meeting of the President’s Financial Markets Working Group (GTP) to discuss the issue. The Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) will also participate in the meeting.
Yellen explained, “Bringing the regulators together will allow us to assess the potential benefits of stablecoins while mitigating the risks they could pose to users, the markets or the financial system.” The secretary of the treasury detailed:
With the rapid growth of digital assets, it is important that agencies work together to regulate this industry and develop possible recommendations for new authorities.
According to the announcement, “the PWG was created to improve the integrity, efficiency, order and competitiveness of the US financial markets.”
Yellen is a member of the PWG, alongside the Chairman of the Board of Governors of the Federal Reserve System, the Chairman of the Securities and Exchange Commission (SEC) and the Acting Chairman of the Commodity Futures Trading Commission (CFTC).
The discussion will build on the PWG’s “Statement on Key Regulatory and Supervisory Issues Relating to Certain Stable Coins” published in December 2020.
Among other things, the document explains that “Depending on its design and other factors, a stable coin may constitute a security, commodity or derivative subject to US federal securities, commodities and / or derivatives laws.” It further emphasizes that “participants and Stablecoin agreements must comply with all applicable anti-money laundering and terrorist financing (AML / CFT) obligations and sanctions before placing products on the market. “.
The Treasury announcement adds:
The PWG will review the current stablecoin regulations, identify the risks and develop recommendations to address those risks. The PWG expects to issue written recommendations in the coming months.
What do you think of Treasury Secretary Janet Yellen’s comments? Let us know in the comments section below.
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