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The Biden Administration Seeks To Regulate Stablecoin Issuers As Banks
Summary: According to a report from Wall Street Journal, people familiar with the matter revealed that the Biden administration is considering implementing regulation to stablecoin issuers similar to that of banks, including urging these companies to register as banks. People familiar with the matter said that the government is expected to urge Congress to consider legislation ...
According to a report from Wall Street Journal, people familiar with the matter revealed that the Biden administration is considering implementing regulation to stablecoin issuers similar to that of banks, including urging these companies to register as banks.
People familiar with the matter said that the government is expected to urge Congress to consider legislation to formulate a charter for such companies specifically targeting their business models. These measures are designed to address regulators’ concerns that stablecoins may exacerbate financial panic and require stricter supervision.
Sources also stated that an independent senior supervisory agency group is to be build to consider whether the related activities are systemically important. If these companies have not yet been regulated at the federal level, this process may eventually lead to the Fed setting stricter risk management standards for these companies.
By Mary Liu
Tags: Biden,Congress,Regulation,Stablecoin
Link: The Biden Administration Seeks To Regulate Stablecoin Issuers As Banks [Copy]
