US Presidential Advisory Group to Discuss Stablecoins

Federal Reserve Chairman Jerome Powell, Securities and Exchange Commission Chair Gary Gensler and Commodity Futures Trading Commission Acting Chair Rostin Behnam will also participate in Monday's meeting.

AccessTimeIconJul 16, 2021 at 4:40 p.m. UTC
Updated Sep 14, 2021 at 1:26 p.m. UTC

The President's Working Group on Financial Markets plans to discuss stablecoins at a meeting on July 19, the U.S. Treasury Department announced Friday.

Treasury Secretary Janet Yellen is convening the working group, which consists of major financial regulatory agency heads, to examine stablecoin regulation and risks, and to find suggestions for future work around this issue. The President's Working Group is an interagency entity tasked with monitoring the U.S.'s financial markets.

In the press release announcing the meeting, Yellen said the meeting could help protect users, markets and the broader financial system from any risks that stablecoins pose, while still enabling the government to "assess the potential benefits."

“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," she said.

The group expects to publish written recommendations in the near future.

The President's Working Group already published one document about stablecoin regulation in December, which examined retail payments and sought public feedback on how these types of payments are being used.

The December statement warned there may be risks around stablecoins, particularly with regard to end user rights, know-your-customer and anti-money laundering issues, market integrity and monetary stability.

Federal Reserve Chairman Jerome Powell, Securities and Exchange Commission Chair Gary Gensler and Commodity Futures Trading Commission Acting Chair Rostin Behnam will also be part of Monday's meeting. While the December iteration of the group asked former Acting Comptroller Brian Brooks to weigh in on its report, it's unclear whether current Acting Comptroller Michael Hsu will be a part of any future recommendations.

The news comes just after Powell told Congress that greater regulations are needed around stablecoins before they can become a significant part of U.S. payments networks.

“Stablecoins certainly have some advantages in terms of faster payment systems and have some attributes of CBDCs [central bank digital currencies] but there are some risks with stablecoins right now,” Powell told the House of Representatives Committee on Financial Services. “I think the issue is that stablecoins are a lot like money market funds or bank deposits or a narrow bank.”


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

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.


CoinDesk - Unknown
Bank of England Committee Calls for Enhanced Crypto Regulation to Limit Contagion

The loss of $2 trillion of crypto market cap over a period of months has “underscored the need for enhanced regulation,” the Bank of England’s Financial Policy Committee said.

CoinDesk - Unknown
CoinDesk - Unknown
Nexo Signs Term Sheet With Vauld for Potential Acquisition

Nexo said it has a 60-day exclusive due diligence period in which to decide if it will acquire up to 100% of Singapore-based Vauld.

CoinDesk - Unknown
CoinDesk - Unknown
UK Government Seeks Views on DeFi Taxation

Those wishing to submit evidence have until Aug. 31 to do so.

CoinDesk - Unknown
CoinDesk - Unknown
Former JPMorgan Banker Samir Shah Becomes COO at Pantera Capital

Shah joins Pantera after 12 years at JPMorgan spanning roles in sales, strategy and digital.

CoinDesk - Unknown