In a meeting on Monday, treasury secretary, Janet Yellen, told the regulators that the US Government should quickly establish a framework to regulate stablecoin.
“The secretary underscored the need to act quickly to ensure there is an appropriate U.S. regulatory framework in place,” the Treasury Department said in a statement following a meeting.
A group of U.S. regulators plans to issue recommendations in the coming months for fixing any regulatory gaps around stablecoins, the Treasury Department said in a statement.
The group discussed the rapid growth of stablecoins, which are cryptocurrencies that attempt to peg their values to a conventional currency, like the U.S. dollar, according to the Treasury. Regulators discussed their potential uses, as well as risks to end users and the financial system.
The lawmakers asked Powell about stablecoin during two hearings he attended on Capitol Hill last week. He asked for stronger regulations for stablecoins. After that Yellen convened the PWG to discuss possible interagency work on Stablecoins.
