Regulation in Sight? U.S. Treasury Department held meetings to assess the stablecoins market
Regulation in Sight? U.S. Treasury Department held meetings to assess the stablecoins market By Angel Di Matteo @shadowargelAlthough

there are no concrete regulatory initiatives at the moment, U.

S

. Treasury Department officials are studying the risks, benefits and market behavior of stablecoins,

evaluating the possibility of designing enforceable laws. The

U

.S.

Treasury Department, the entity responsible for managing the country’s funds and reserves, is discussing the possibility of regulating stablecoins

issued by private companies.

U.S. Treasury Department and stablecoins.

The information was revealed by Reuters news agency, which published a report on several meetings held last week by representatives of the Treasury Department, in which they examined the risks posed by the use of stablecoins

for users, the market and the financial system. They also discussed the main benefits associated with these assets, and the possibility of considering a regulation applicable to these cases.

In this regard, Treasury Department

spokesman John Rizzo commented:

“The Treasury Department is meeting with a wide range of stakeholders, including advocates, consumers, members of Congress and market participants.”

Unnamed sources with knowledge of the case indicated that one of the meetings took place late last week. There, agency representatives discussed with community members the need for direct oversight of this space, especially with the prospect of mass adoption.

Among the concerns raised were aspects such as the proper backing of circulating tokens, the possibility of massive exchanges of fiat for crypto, as well as the fact of risks linked to the issuance and circulation of these assets. During the meetings held with representatives of banking institutions, the idea of a regulation revolved around the idea, but at that time it was only limited to the collection of data, so there are still no initial ideas about the approach or treatment that would be given to these assets.

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Stablecoins

and their boom in the market

The concerns on the part of the regulatory body come as a result of the growing commercial boom that stablecoins are capitalizing on in the main markets

.

A survey via CoinMarketCap reveals that as of this September 13 there is at least some USD $68.26 billion circulating in Tether(USDT), while in <a href=”https

://www.diariobitcoin.com/glossary/usd-coin/” target=”_blank” rel=”noopener”>USD Coin (USDC) there is the equivalent of about USD $29.309 million issued.

For their part, entities such as Visa and Mastercard are increasingly motivated to collaborate within the stablecoin ecosystem, noting that these solutions are increasingly present in the daily lives of users and interested parties.

Faced with this reality, various entities and organizations have also expressed the need to address this space with effective regulations. The comments of U.S. Treasury Secretary Janet Yellen, who expressed her concern about the growing popularity of stablecoins in the market, and invited all those involved to speed up the regulatory processes that correspond to this area, are particularly noteworthy.

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Source: Reuters, Cointelegraph

Version by Angel Di Matteo / DiarioBitcoin

Image by Unsplash