The US President’s Financial Markets Working Group is pushing for lawmakers to subject stablecoin issuers to the same strict federal oversight as banks.
According to the report of the working group under the President of the United States, Congress should require that providers of custodian wallets are regulated by a federal agency, as well as limit the interaction of stablecoin issuers with non-financial companies.
US Undersecretary of the Treasury, Nellie Liang, expressed the view that without risk mitigation measures, both industry and regulators alike understand that they may be missing out on some of the potential benefits of financial innovation.
“I think a lot of people understand that there is a need for a structure that is not overly burdensome and protects and promotes innovation,” she said.
Liang believes that if the US Congress does not pass laws regarding cryptocurrencies, then regulators have the right to take their own measures to oversee the industry. In her opinion, lawmakers are still interested in developing a law that effectively regulates cryptocurrencies, and especially stablecoins.
“This is a new technology, a new innovation. Unsurprisingly, the current regulatory and legal framework is not designed to address some of the new types of risks that the industry can pose. ”
According to Liang, Congress is likely to take part in drafting legislation to regulate cryptocurrencies in general and stablecoins in particular. The Democratic and Republican parties have been discussing cryptocurrency regulation for months.
In late October, the Financial Action Task Force on Money Laundering (FATF) published a new version of the cryptocurrency industry regulation guide. In addition, it was reported earlier that the SEC will take over the functions of overseeing the stablecoin market in the United States.
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