Yellen Tells Regulators to ‘Act Quickly’ on Stablecoin Rules

SourceYahoo News
CountryMiddle east

Christopher CondonJuly 19, 2021, 1:17 PM·3 min read

(Bloomberg) — Treasury Secretary Janet Yellen pushed top U.S. financial regulators to accelerate their consideration of new rules to police so-called stablecoins, a type of cryptocurrency that’s seen rapid recent growth and remains largely unsupervised.

“The secretary underscored the need to act quickly to ensure there is an appropriate U.S. regulatory framework in place,” the Treasury Department said Monday in a statement following a meeting of the President’s Working Group on Financial Markets.

The group “expects to issue recommendations in the coming months,” according to the statement.

The statement said meeting participants “discussed the rapid growth of stablecoins, potential uses of stablecoins as a means of payment and potential risks to end-users, the financial system and national security.”

A stablecoin’s value is fixed to a national currency or commodity and backed by reserves of that underlying asset. While cryptocurrencies like Bitcoin have evolved essentially into investment assets, stablecoins represent a more attractive option for those more...