US authorities will gather to discuss stablecoins soon

Must Read

Crypto asset manager Babel Finance reaches $2B valuation

Despite recent swings in cryptocurrency values, many institutional investors appear undeterred. The growth of Babel Finance, which...

Taiwanese Crypto Firm XREX Plants a Flag on European Soil

European Union (EU) member state Lithuania has approved a ‘Virtual Asset Service Provider’ license for Taiwanese blockchain fintech project...

Weekly Institutional BTC Outflows Hit $154 Million Last Week

BTC investment products saw a significant jump in outflows last week as institutional investors showed a glimpse...

Janet Yellen, the US Treasury Secretary, said on Friday that she would engage with authorities next week to address “interdepartmental collaboration” on stablecoins, a fast-developing class of cryptocurrencies that is attracting legislators’ attention.

On Monday, the President’s Working Group on Financial Markets will speak with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation to discuss the opportunities and costs of stablecoins, a type of cryptocurrency that is pegged to conventional assets, including fiat currencies like the dollar.

“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,” Yellen stated, adding that watchdogs must weigh the positive effects of stablecoins against the dangers they may cause to users, markets, or the financial industry.

As new choices arise and gain popularity, politicians, Federal Reserve officials, and other regulators are paying increasing attention to stablecoins and other digital payment alternatives.

Stablecoin và vai trò trong thị trường tiền điện tử

Stablecoins are expanding very quickly, according to Fed Chair Jerome Powell, who also expressed worry about their lack of adequate oversight in congressional hearings in the week.

“If we’re going to have something that looks just like a money-market fund or bank deposit … we really ought to have appropriate regulation and today we don’t,” Powell stated.

In the previous week, US Senator Elizabeth Warren wrote to SEC Chairman Gary Gensler, requesting that he address the threats that the digital currency industry offers to consumers and financial systems.

Also, in the previous month, Boston Fed president Eric Rosengren labeled stablecoins a “misnomer,” saying they can be unpredictable and represent a risk to financial security.

The Federal Reserve is assessing the digital payments ecosystem to see if it might launch a central bank digital currency, or CBDCs.

One of the greatest reasons in favor of a CBDC, according to Powell, is that it would reduce the need for numerous stablecoins or digital currencies, but he stated that the Fed will not be going in that route.

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisement -

Latest News

Crypto asset manager Babel Finance reaches $2B valuation

Despite recent swings in cryptocurrency values, many institutional investors appear undeterred. The growth of Babel Finance, which...

Taiwanese Crypto Firm XREX Plants a Flag on European Soil

European Union (EU) member state Lithuania has approved a ‘Virtual Asset Service Provider’ license for Taiwanese blockchain fintech project XREX. The decision enables the...

Weekly Institutional BTC Outflows Hit $154 Million Last Week

BTC investment products saw a significant jump in outflows last week as institutional investors showed a glimpse of panic. According to a...

Almost $1 Trillion Wiped From Crypto Markets Over Last 7 Weeks – Tether Continues To Bleed

Crypto markets have continued to haemorrhage since early April this year, as they are pushed down by most other asset classes during...

Cryptocurrency tax firm CoinTracker announces foray into Indian market

Cryptocurrency portfolio tracking and tax compliance platform CoinTracker on Wednesday announced its foray into the Indian market. The company's move...
- Advertisement -

More Articles Like This