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New Report From U.S. Treasury Department Requires Stablecoins To Be Regulated By Federal Supervision
Summary: The US President’s Financial Markets Working Group (PWG) released its long-awaited stablecoin report on Monday. The report reads: "Stablecoins and stablecoin arrangements raise significant concerns from an investor protection and market integrity perspective." The new report requires Congress to enact new laws to restrict the eligibility for issuing stablecoins, and urges legislators to place stablecoin ...
The US President’s Financial Markets Working Group (PWG) released its long-awaited stablecoin report on Monday.
The report reads: "Stablecoins and stablecoin arrangements raise significant concerns from an investor protection and market integrity perspective."
The new report requires Congress to enact new laws to restrict the eligibility for issuing stablecoins, and urges legislators to place stablecoin issuers in the same federal regulatory domain as banks.
The PWG stated that Congress should also require wallet custodial providers to accept federal regulation and restrict the interaction of stablecoin issuers with non-financial companies such as technology or telecommunications providers.
The PWG wrote: "To address risks to stablecoin users and guard against stablecoin runs, legislation should require stablecoin issuers to be insured depository institutions, which are subject to appropriate supervision and regulation, at the depository institution and the holding company level. The legislation would prohibit other entities from issuing payment stablecoin".
By Mary Liu
Tags: Financial Markets Working GroupFinancial Markets Working Group,PWG,Regulation,Stablecoin
Link: New Report From U.S. Treasury Department Requires Stablecoins To Be Regulated By Federal Supervision [Copy]
