US Departments Working Group Releases Stablecoin Report
The US Treasury Department has published its report on the dangers associated with stablecoins. The working group proposed to equate the issuers of these currencies with depository organizations, forcing them to insure investments, which would make these firms equal in rights with banks.
The report notes that stablecoins, including the largest of them Tether (USDT), Binance USD (BUSD), and USD Coin (USDC) have grown by more than 500% over the last year, reaching a market capitalization above 127 billion. Their accelerated increase has motivated US lawmakers to accelerate the pace of considering these crypto market products in more detail.
The main recommendation of the working group of the US Treasury was that the companies-issuers of stablecoins are required to carry out deposit insurance. This, according to politicians, will make investments more reliable and provide some form of support in the event of sudden crises.
Surveillance over issuers, according to the working group, should be carried out by both the companies responsible for the issue of stablecoins and the holding they are part of. In addition, the departments were concerned about the interdependence of some cryptocurrency companies, for example, Bitfinex and Tether.
Agencies such as the US Treasury, the US Federal Reserve, the US Securities, and Exchange Commission, and the US Commodity Futures Trading Commission should address any potential regulatory gaps. At the same time, the latter two should take part in the regulation of the overwhelming majority of existing and emerging stablecoins on the market.
After examining the report, cryptanalysts agreed that pressure on stablecoins and their issuers is unlikely in the near future. Because Congress will not soon react to the results of the report provided by the departments.
Therefore, despite all the efforts of one of the ardent opponents of bitcoin, the current US Treasury Secretary Janet Yellen, the formation of a strict regulatory framework for stablecoins may be rejected or simply postponed.
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