{"id":361105,"date":"2021-11-02T00:00:00","date_gmt":"2021-11-01T21:00:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/us-treasury-report-says-stablecoin-legislation-is-urgently-needed-to-address-risks\/"},"modified":"2021-11-02T00:00:00","modified_gmt":"2021-11-01T21:00:00","slug":"us-treasury-report-says-stablecoin-legislation-is-urgently-needed-to-address-risks","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/us-treasury-report-says-stablecoin-legislation-is-urgently-needed-to-address-risks\/","title":{"rendered":"# US Treasury report says stablecoin legislation is ‘urgently needed’ to address risks"},"content":{"rendered":"

“# US Treasury report says stablecoin legislation is ‘urgently needed’ to address risks <\/strong>”
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The President\u2019s Working Group on Financial Markets, or PWG, has released a report suggesting that stablecoin issuers in the United States should be subject to \u201capp<\/a>ropriate federal oversight\u201d akin to that of banks.<\/p>\n

A Nov. 1 U.S. Treasury\u00a0report<\/a> from the group with the Office of the Comptroller of the Currency and Federal Deposit Insurance Corporation said Congress should \u201cact promptly to ensure that payment stablecoins are subject to appropriate federal prudential oversight on a consistent and comprehensive basis.\u201d The government agencies said stablecoin issuers should be held to the same standards as insured depository institutions including state and federally chartered banks and savings associations as they protect customers\u2019 deposits and limit \u201cany potential negative systemic impacts in the event of bank failure.\u201d<\/p>\n

The report did not specify under which federal agency stablecoin and digital asset trading fell, but said the Securities and Exchange Commission, or SEC, as well as the Commodity Futures Trading Commission, or CFTC, had \u201cbroad enforcement, rulemaking, and oversight authorities\u201d to address such transactions and companies within the crypto space. However, the PWG suggested the risks concerning stablecoins would likely grow as the space developed and may sometimes fall \u201coutside of the regulatory perimeter\u201d of the SEC and CFTC.<\/p>\n

\u201cBecause payment stablecoins are an emerging and rapidly developing type of financial asset, legislation should provide regulators flexibility to respond to future developments and adequately address risks across a variety of organizational structures,\u201d said the report. <\/p>\n

While the group said it believes this legislation is \u201curgently needed to comprehensively address the prudential risks posed by payment stablecoin arrangements,\u201d it said federal agencies should continue to use their authority to address risks within the crypto space if and when Congress chooses to act. Should there fail to be congressional action, the PWG recommended the Financial Stability Oversight Council step in to establish additional regulatory standards for stablecoins.<\/p>\n

Many stablecoin issuers and companies in the crypto space participated in the discussions leading to the report. The PWG list of exchanges included Coinbase and Gemini, as well as stablecoin issuers Tether, Paxos, and the Diem Association.<\/p>\n

Related: <\/em><\/strong>US Treasury reportedly in talks for stablecoin regulation<\/em><\/strong><\/p>\n

The release of the Treasury report follows a seeming legislative tug-of-war between U.S. government agencies on stablecoins. In September, Gary Gensler hinted that both the SEC and CFTC would benefit from congress assistance in regards to regulation and enforcement of stablecoins, but a subsequent report from Bloomberg suggested the SEC was taking the reins on proposing legislation and overseeing the sindustry.<\/p>\n