Stablecoins should meet the same regulatory standards as other aspects of the financial system, says U.S. President Trump’s Working Group on Financial Markets.
The working group published a report Wednesday detailing how it views retail payments using stablecoins and asking for public feedback on the issue.
Stablecoins must meet appropriate money-laundering and oversight requirements, the document said:
“Where a stablecoin that is primarily used for retail payments is adopted at a significant scale in the United States, the associated risks may require additional safeguards. We encourage relevant participants engaged in the design of such stablecoin arrangements and their functions, operations, transactions, and risk management to align with key principles.”
These principles include addressing financial stability risks, among others.
U.S. regulators should coordinate among each other and with international partners to ensure they keep up with the space, the document said.
The working group, which includes Treasury Secretary Steven Mnuchin, Federal Reserve Chair Jerome Powell, Securities and Exchange Commission Chair Jay Clayton and Commodity Futures Trading Commission Chair Heath Tarbert, was formed in the late 1980s by President Ronald Reagan, and is tasked with overseeing and nurturing the U.S.’ financial markets.
In a statement, Acting Comptroller of the Currency Brian Brooks said he appreciates the “productive balance” the group reached on the issue.
“In its wisdom, the group also remained agnostic regarding the technologies related to unhosted wallets, which helps the nation remain competitive by preserving industry’s ability to innovate in responsible ways and adapt to the market and consumer needs and preferences,” Brooks said.