New cryptocurrency could mean new rules.
Leading U.S. financial regulators got a preview of an in-the-works report federal staff is preparing on stablecoins—a new class of cryptocurrencies that typically try to peg value to other assets—during a meeting convened by U.S. Treasury Secretary Janet Yellen on Monday.
Federal Reserve, Securities and Exchange Commission, Federal Deposit Insurance Corporation, and Office of the Comptroller of the Currency heads, among others, joined Yellen’s discussion.
They exchanged thoughts on the rapid increase in stablecoins’ use—and potential as a means of payment and as a risk to financial and national security.
“The Secretary underscored the need to act quickly to ensure there is an appropriate U.S. regulatory framework in place,” according to a readout of the meeting published by the Treasury Department.
As the name indicates, stablecoins are billed as being designed to have a relatively stable price compared to other cryptocurrencies, which have a reputation of being volatile.
During the meeting, the senior officials discussed what the nascent form of crypto might mean for the nation—and coin holders—with and without proper regulations. They were also informed about an upcoming report Treasury personnel are producing on potential benefits and risks of stablecoin use, the present national regulatory framework, and the development of recommendations for addressing any governing gaps.
“The [President’s Working Group on Financial Markets] expects to issue recommendations in the coming months,” Treasury’s readout said.
Yellen’s request for a mechanism to guide this new digital currency usage comes as ransomware cyberattacks—which are generally paid in cryptocurrency—have skyrocketed.
Source: https://www.nextgov.com/emerging-tech/2021/07/treasury-secretary-agencies-must-develop-stablecoin-regulations/183907/
