U.S. Secretary of Treasury Janet L.Yellen plans to convene the President’s Working Group on Financial Markets (PWG) to discuss possible interagency work on Stablecoins. The PWG meeting will include the office of the Comptroller of the currency and the Federal Deposit Insurance Corporation. The group will meet Monday, July 19.
Secretary Yellen said, “Bringing together regulators will enable us to assess the potential benefits of stablecoins while mitigating risks they could pose to users, markets, or the financial system. 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.”
In December 2020, the PWG published “Statement on Key Regulatory and Supervisory Issues Relevant to Certain Stablecoins”. This PWG meeting will discuss the regulation of stablecoins, including possible risks and recommendations to manage those risks. Written recommendations will follow later this year.
In addition to the Secretary of the Treasury, the PWG members are the Chair of the Board of Governors of the Federal Reserve system, the Chair of the Securities and Exchange Commission, and the Acting Chairman of the Commodity Futures Trading Commission.
The announcement came after Federal Reserve’s Chairman Jerome Powell called for strong regulations on stablecoin. He said that stablecoins pose a risk to the traditional financial market. Recently, Congressman Emmer also introduced the Bipartisan bill into the House. The bill gives a clear definition of assets like digital tokens and emerging technologies under the current securities law.
