US Treasury to highlight stablecoin risks in upcoming report
The US Treasury will soon publish a report on potential risks of stablecoins as the government prepares policies on cryptocurrencies, Bloomberg reported on Thursday citing anonymous sources.
The previous week, Reuters reported that several financial industrialists had multiple meetings with the US Treasury to discuss the potential risks and benefits of stablecoins. The move was seen as a sign that the Treasury is looking to build a comprehensive framework on stablecoins.
The specifics of the report have not been clarified as of yet, however, Reuters reported at the time that the Treasury asked if stablecoins require direct oversight if it sees increased demand.
They also debated on if there was any way the authorities can mitigate risks if too many people convert the coins to US dollars all at once in the future.
CoinDesk reported on the 17th that the report will be submitted to the ‘Presidential Working Group on Financial Markets’ after confirmation.
Treasury Secretary Janet Yellen held a meeting on stablecoin in the subcommittee in July, with key participants such as SEC Chairman Gensler, CFTC Deputy Chairman Benham, and Fed Chairman Powell. At that time, the Treasury Secretary was pushing for regulations on stablecoins and urged the financial regulators to develop the required framework.
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