The US Treasury Department is preparing new recommendations for more regulatory pressure on stablecoins as the cryptocurrency market is getting bigger, Bloomberg has learned, citing sources familiar with the matter. According to the report, the regulator wants to be sure that investors could confidently move money in and out of tokens. Treasury is said to release a new policy framework on how to regulate the stablecoin market in the coming weeks.
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Officials are also reportedly discussing launching a review by the Financial Stability Oversight Council into whether stablecoins represent a threat to the US economy. Treasury officials are also worried about how they could keep the growth of tech giants-backed tokens under control.
The news comes shortly after Federal Reserve Chair, Jerome Powell, said that the central bank "has no intention" to ban stablecoins or cryptocurrencies. Testifying in Congress, Powell said he had misspoken when he tried to explain the regulator's position regarding the regulation of the digital currencies market earlier in July.
Earlier in September, Bloomberg also reported that Treasury wants to oblige stablecoin issuers to guarantee that investors could exchange the assets into their collateral (e.g. the US dollar) for free.
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