With the Working Group on Financial Markets, Yellen will address stablecoin rules.
According to a press release issued today, US Treasury Secretary Janet Yellen will meet with authorities to examine stablecoins.
On Monday, there will be a workgroup
On Monday, July 19, Yellen will meet with the President’s Working Group on Financial Markets, according to the US Treasury.
Members of the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation are among those in this category.
Yellen remarked, “By bringing together regulators, we will be able to examine the potential advantages of stablecoins while reducing dangers.” She also suggested that government departments collaborate on regulations and provide recommendations to authorities.
The discussion will expand on the workgroup’s 2020 statement, which explored similar regulatory issues surrounding stablecoins.
A central bank digital currency (CBDC) or government-issued stablecoins do not appear to be on the workgroup’s radar. Instead, it seems to be about commercial stablecoin laws.
Is Yellen pro-crypto or anti-crypto?
When President Joe Biden entered office earlier this year, Yellen was named Secretary of the Treasury. On January 25, 2021, she was confirmed.
Yellen has a long history of being anti-cryptocurrency, citing its usage in criminal behavior as an example. She has, however, acknowledged the potential for digital money to enhance the banking system.
As a result of today’s news, Yellen appears to be slightly more receptive to digital currency than her previous remarks imply.
This announcement, however, does not necessarily imply that restrictions will be drastically altered. Entities who merely want to work with stablecoins appear to be free to do so at the moment.
Stablecoins may be lawfully traded on most cryptocurrency exchanges, and the OCC has even permitted banks to interact with them. Visa has also stated that it plans to support stablecoin transactions.
One significant legislative constraint is FinCEN’s recent advice, which suggests that stablecoin inventors and issuers may be required to operate as Money Service Businesses (MSBs).
So far, however, no significant stablecoin issuers have been hampered by this.