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.
“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.
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.