The President’s Working Group on Financial Markets expects to deliver regulatory recommendations for stablecoins in the coming months.
United States Treasury Secretary Janet Yellen has told financial regulators that the government must act quickly to 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, possible risks to end-users, and their broader impact on the U.S. financial system and national security.
In February, Yellen warned that the misuse of crypto assets has been a growing problem alongside cyber-attacks triggered by the global pandemic. At the time, she acknowledged the promise of these new technologies but also warned about her vision of the reality, stating “cryptocurrencies have been used to launder the profits of online drug traffickers; they’ve been a tool to finance terrorism.”
Co-founder and CEO of Circle, Jeremy Allaire, labeled the meeting as “very significant”, commenting that stablecoins are here to stay and likely to become key 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.”
1/14 VERY significant meeting today with Presidential Working Group meeting to discuss appropriate policy and supervision of private stablecoins. Lots to say about this, @SecYellen, @federalreserve , and @USOCC teams.
— Jeremy Allaire (@jerallaire) July 19, 2021
Stablecoin growth has been monumental this year as demand for decentralized finance has surged. Circle’s USDC has been the best performer so far this year with a 577% increase in circulating supply to record levels of 26.4 billion according to CoinGecko.
Speaking on stablecoins last week, Federal Reserve Chair Jerome Powell similarly emphasized the need to establish a robust regulatory framework for stable tokens.
“If they’re going to be a significant part of the payments universe, then we need an appropriate regulatory framework which, frankly, we don’t have,” he said.
Related: Fed Chair says stablecoins need stricter regulation, speaks on CBDC
As reported by CryptoPumpNews earlier this month, the world’s most popular stablecoin, Tether, remains under scrutiny. On June 25, President of the Federal Reserve Bank of Boston, Eric Rosengren, raised a cautionary flag regarding Tether’s basket of reserve assets.
When the total stablecoin supply topped $100 billion in May, it triggered alarm among financial regulators concerned about the sector’s lack of oversight, including the opacity surrounding how stable token issuers manage their reserves.
Every trader who trades cryptocurrency on the Binance exchange wants to know about the upcoming pumping in the value of coins in order to make huge profits in a short period of time.
This article contains instructions on how to find out when and which coin will participate in the next “Pump”. Every day, the community on Telegram channel Crypto Pump Signals for Binance publishes 10 free signals about the upcoming “Pump” and reports on successful “Pumps” which have been successfully completed by the organizers of the VIP community.Watch a video on .
These trading signals help earn huge profit in just a few hours after purchasing the coins published on the Telegram channel.Are you already making a profit using these trading signals? If not, then try it!We wish you good luck in trading cryptocurrency and wish to receive the same profit as VIP subscribers of the Crypto Pump Signals for Binance channel.