The need to regulate stablecoins is gradually becoming a general thing, earlier on Japan had called for a regulation on stablecoins. Now the US intend to discuss the regulation of stablecoins, and its potential benefits and risks.
Janet L. Yellen, the United States Secretary of the Treasury, announced intentions to convene the President’s Working Group on Financial Markets, as well as the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, to discuss prospective interagency work on stablecoins.
The meeting is scheduled for Monday, July 19.
Secretary Yellen remarked:
“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. In light of the rapid growth in digital assets, it is important for the agencies to collaborate on the regulation of this sector and the development of any recommendations for new authorities.”
The PWG stated in December 2020 that it will begin analyzing current stablecoin legislation in order to identify and address the technology’s vulnerabilities.
The notification of this meeting comes two days after Federal Reserve Chairman Jerome Powell spoke in front of the House of Representatives about the need for tougher rules for stablecoins.
Stablecoins must be regulated, according to Powell, if they are to become a part of the payments ecosystem.
A bipartisan bill was filed in the House yesterday to give current securities law a clear description of assets such as digital tokens and other developing technology.
The Securities Clarity Act would apply to all assets, real and digital, and would specify that an investment contract asset is independent and distinct from any offering in which it may have participated.