- The report, which cited three unnamed sources, said the meetings with banks and other organizations, including a Friday meeting, considered potential regulation and related topics
- According to two of the sources, the Treasury officials inquired if stablecoins would need direct oversight if demand for them increased markedly.
- The officials also inquired how regulators might limit the risk potentially occurring if too many people tried to cash in their stablecoins at roughly the same time, and whether the most significant stablecoins should have traditional assets’ backing.
- In addition, the meetings covered how stablecoins could be structured and used and whether there is sufficient regulatory structure in place to address security concerns.
- The officials seemed to be collecting information and did not offer opinions on potential regulatory moves, according to one individual cited in the article.
- In a statement cited by Reuters, Treasury spokesman John Rizzo said that in examining “potential benefits and risks of stablecoins for users, markets, or the financial system,” the department was “meeting with a broad range of stakeholders.”
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.