US Treasury Turns Its Gaze to Stablecoin Issuers

Stablecoin transactions and their impact on financial stability are top-of-mind for Treasury officials

AccessTimeIconSep 16, 2021 at 8:58 p.m. UTC
Updated Sep 17, 2021 at 5:46 p.m. UTC

Nikhilesh De is CoinDesk's managing editor for global policy and regulation. He owns marginal amounts of bitcoin and ether.

The U.S. Treasury Department is preparing a report on stablecoins and their potential risks to the financial system, Bloomberg reported Thursday.

CoinDesk confirmed that Treasury officials are developing the report to present to the President’s Working Group for Financial Markets, though it’s unclear when the working group plans to meet.

The team of top financial regulators, including Treasury Secretary Janet Yellen, Federal Reserve Chairman Jerome Powell and Securities and Exchange Commission (SEC) Chairman Gary Gensler, along with other regulators, last met on July 19, when Treasury staff presented their approach to the report.

How stablecoins are actually used remains an issue for the Treasury officials working on this report, Bloomberg said, citing anonymous sources.

Treasury officials reportedly met with representatives from financial institutions to discuss stablecoin regulations and other crypto issues last week, according to Reuters.

A Treasury spokesperson declined to comment.

Capitol Hill crackdown?

The federal government has been taking a closer look at the crypto industry in recent months, with Gensler in particular speaking out about regulatory gaps he sees in the sector.

Those gaps include the lack of a single federal regulator to oversee crypto spot trading markets and investor protection. Sources tell CoinDesk a burgeoning turf war over crypto regulation is causing angst among industry participants.

The Treasury Department has also been part of an effort to more effectively capture certain types of crypto transactions for tax purposes. A provision in the U.S. Senate’s $1 trillion infrastructure bill defines broker for tax reporting purposes, though critics of the bill claim the definition is too broad and would capture entities that don’t facilitate crypto transactions for customers.

The House of Representatives is set to vote on this bill on Sept. 27.


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

Nikhilesh De is CoinDesk's managing editor for global policy and regulation. He owns marginal amounts of bitcoin and ether.

CoinDesk - Unknown

Nikhilesh De is CoinDesk's managing editor for global policy and regulation. He owns marginal amounts of bitcoin and ether.


CoinDesk - Unknown
First Mover Asia: Bitcoin Holds Above $21K in Weekend Trading; Solana Web3 Phone Faces Long Odds

Ether stays over $1,200; prior blockchain phones have failed because the market has realized their functionalities are already available via apps that can be loaded onto any old phone.

CoinDesk - Unknown
CoinDesk - Unknown
Opaque Platforms and Intertwined Protocols Pose Big Risk to Crypto

Second article in a series about risks we’re thinking about during these crypto down days.

CoinDesk - Unknown
CoinDesk - Unknown
Putin Weaponizes Inflation

Examining a recent propaganda speech from the Russian leader.

CoinDesk - Unknown
CoinDesk - Unknown
Morgan Creek Is Trying to Counter FTX’s BlockFi Bailout, Leaked Call Shows

FTX’s $250 million credit facility offer – if inked as initially proposed – stood to effectively wipe out all BlockFi shareholders, including Morgan Creek Digital, the firm told its investors.

CoinDesk - Unknown