US Treasury Department officials discuss the risks and rewards of Stablecoins 'With players in the financial industry
The US Treasury Department has reportedly held meetings with participants from the financial industry in countries to discuss the “risks and rewards of stablecoins”. In addition, officials reportedly used the meetings to discuss "whether stablecoins would require direct monitoring if they were to become extremely popular.
Policymakers alarmed by the growth of the cryptography
According to a report , the meetings follow a "booming cryptocurrency market that broke a record $ 2 trillion in April ". This rapid growth in cryptocurrencies and stablecoins has reportedly alarmed policymakers in Washington. It also alarmed central bankers like the president of the ReserFederal of Boston, Eric Rosengren, who affirms that stablecoins could be a "disruptor" to major money market funds.
Therefore, at one of two meetings held last week, US Treasury officials and market players The financial industry is said to have "discussed how regulators should try to mitigate the risks of too many people trying to cash their coins at the same time." They also discussed the question of whether large coins should be backed by traditional assets.
This Friday g meeting between Treasury officials and industry participants comes as reports suggest that US financial regulators are now struggling to understand the risks and opportunities posed by crypto-currencies to the traditional American financial system. Officials also reportedly met with a group of banks and credit unions to discuss similar issues, at a meeting earlier this week.
Regulators Monitor Stablecoins
The report, which cites an anonymous source US Treasury Department officials also asked industry participants "on how stablecoins should be structured, how they could be used, whether the current regulatory framework is sufficient and how to use them. 'other security and soundness issues. "
The report explains, however, that " officials appeared to be gathering information and did not share their thinking on how stablecoins should be regulated " ". Nevertheless, it is expected that the informations collected "are likely contributing to a general Treasury report on stable coins expected in the coming months ".
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