The President’s Working Group on Financial Markets to present regulatory recommendations for stablecoins.
The Secretary of the United States Treasury Janet Yellen has informed lawmakers that the government must quickly establish a regulatory framework for stablecoins.
The comments came at Monday’s meeting of the President’s Working Group on Financial Markets. The group discussed the rapid growth of stablecoins, revealing plans to issue regulatory recommendations in the coming months, according to Reuters.
The group also deliberated on stablecoins as a means of payment, potential risks to end-users, and their impact on the financial system and national security.
The secretary warned that the misuse of crypto assets has been a growing concern alongside cyber-attacks triggered by the global pandemic. She acknowledged the promise of these new technologies but also warned about her vision of the reality.
Jeremy Allaire Co-founder and CEO of Circle described the meeting as “very significant”, commenting that stablecoins are here to stay and likely to become main components of the global economic and financial system:
“It’s extraordinary and positive that US financial policy leadership are taking this on right now. It’s a sign of how far we’ve come and how fast this is all happening.”
Speaking on stablecoins last week, Federal Reserve Chair Jerome Powell similarly emphasized the need to establish a robust regulatory framework for stable tokens.
