US Treasury Secretary Janet Yellen will hold a meeting with the Biden government working group on financial markets to discuss stablecoin regulation. “With digital assets growing rapidly, it is important that authorities work together to regulate this sector and develop recommendations for new authorities,” said Yellen.
US government discusses stablecoin regulation
US Treasury Secretary Janet Yellen announced on Friday her plans to discuss regulating stablecoins. It will convene a meeting of the President’s Working Group on Financial Markets (PWG) on July 19 to discuss the matter. The Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) also attend the meeting.
Yellen stated, “Bringing regulators together will allow us to assess the potential benefits of stablecoins while mitigating the risks they could pose to users, markets or the financial system.” The finance minister in detail:
With the rapid growth of digital assets, it is important that authorities work together to regulate this sector and develop recommendations for new authorities.
The announcement states: “The PWG was founded to improve the integrity, efficiency, order and competitiveness of the US financial markets.”
Yellen is a member of the PWG, along with 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 “Declaration on important regulatory and supervisory issues that are relevant to certain stablecoins” published in December 2020.
The document states, among other things, that “Depending on its design and other factors, a stablecoin can represent a security, commodity, or derivative that is subject to US federal securities, commodities, and / or derivatives laws.” Stablecoin participants and arrangements must comply with all applicable Anti-Money Laundering and Terrorist Financing (AML / CFT) regulations and sanctions before bringing products to market. “
The Treasury Department’s announcement adds:
PWG will examine the current regulation of stablecoins, identify risks and develop recommendations for dealing with these risks. The PWG expects to issue written recommendations in the coming months.
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