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Report: US Treasury Department is reviewing Stable Coins legislation


Reuters claims to have been linked to anonymous sources and found that US Treasury Department officials were investigating the legal status of the Stables.

to the Report Coin Telegraph: Following the rapid growth of the stable digital currency market, US Treasury Department officials have recently held meetings to discuss possible legislative conditions for private equity stocks.

According to a report by Reuters, US Treasury Department officials have held several meetings over the past week to discuss the potential risks of stable coins to users, markets and the financial system. In these meetings, other issues were raised, such as the advantages of stable coins, as well as the possibility of enacting new laws.

John Rizzo, a spokesman for the Treasury Department, said:

The Treasury Department is in talks with a number of stakeholders, including consumer rights advocates, members of Congress and market participants.

Reuters quoted three unnamed sources as saying that during a Treasury meeting last Friday, officials asked representatives of the digital currency community that if the Stables could find a wider market, Will they need direct monitoring or not? The issue of the sudden withdrawal of stable coins by the public and how regulatory laws can reduce the risks posed by this event were also discussed at the meeting. Officials also discussed whether the original stable coins should have the same backing as traditional assets.

Treasury officials have already met with a group of banks and credit unions to review Stable Coins legislation. A Reuters source said officials were gathering information and had not commented on how to regulate the Stables.

One of the issues that has made US Treasury officials pay more attention to stable coins is their growing growth over the past year. The total market value of stable currencies such as Tetra and USCAD (USDC) has so far reached more than $ 125 billion, up from about $ 37 billion in January last year. Many traditional financial companies, such as MasterCard, the global payment services giant, have said they intend to support Stable Coin-related solutions. Visa also said that the Stables were “approaching the promise of digitizing Fiat currencies.”

The news came shortly after Sen. Elizabeth Warren called the digital currency industry “the new generation of illegal banks” and said that “banning US banks from holding funds deposited as financial backing for stable coins” was a matter of concern. It is noteworthy. US Treasury Secretary Janet Yellen has previously stressed that the government must act quickly to establish a legal framework for the Stables.

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