WASHINGTON – Biden administration officials met with US financial regulators Monday to discuss a path forward for regulating stablecoins in light of the rapid growth in the digital asset space.
At the meeting, Treasury Secretary Janet Yellen urged meeting participants to “act quickly to ensure there is an appropriate US regulatory framework in place” to address the risks associated with stablecoins, according to a statement from the Treasury Department.
While few details were made available about the issues discussed at the meeting, the Treasury Department said that staffers gave a presentation in preparation of a report on stablecoins – a type of digital currency that is pegged to normal currency such as the US dollar – that the president’s working group on financial markets plans to release in the upcoming months.
“In the meeting, participants discussed the rapid growth of stablecoins, potential uses of stablecoins as a means of payment, and potential risks to end-users, the financial system, and national security,” Treasury said in a press release.
Read Also
- Cryptocurrency : Best Sites to Buy FTM Quickly: Fitmin Finance Increases 800% in a Few Hours Jun 2, 2021
- Cryptocurrency : South Korea to regulate cryptocurrency exchanges in late summer May 31, 2021
- Formula 1: Mercedes at the top, confusion at RedBull, changes at Ferrari… What to expect for 2023? Nov 20, 2022
- Will AML rules be extended to crypto? Aug 10, 2021
- Formula 1: Mercedes at the top, confusion at RedBull, changes at Ferrari… What to expect for 2023? Nov 20, 2022
- Cryptocurrency : Could Ethereum outperform Bitcoin in this bull cycle? Where to buy Ethereum May 28, 2021
- Cryptocurrency : Here’s what the head of JPMorgan thinks about Bitcoin (BTC) May 29, 2021
“Bringing together regulators will enable us to assess the potential benefits of stablecoins while mitigating risks they could pose to users, markets, or the financial system,” said Treasury Secretary Janet Yellen in a press release last week.
Bloomberg News
The meeting comes as US officials have been increasingly worried about the risks posed by the exchange of stablecoins, and their potential use for money laundering. The Fed is also considering the possibility of issuing a US digital dollar.