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Treasury Department and financial market participants discussed the prospects of stablecoins

This week, Treasury officials met with industry participants to get their views on the risks and benefits of stableblocks, cryptocurrencies that are tied to stocks of common currencies or physical commodities. About it writes news agency Reuters, citing data from its own knowledgeable sources.

Image: Dado Ruvic / Reuters

Image: Dado Ruvic / Reuters

The meeting of the authorities with industry representatives is due to the concern of politicians about the rapidly growing cryptocurrency market, the capitalization of which in April this year exceeded $ 2 trillion for the first time. According to the CoinMarketCap platform, as of September 10, the total capitalization of stablecoins was about $ 125 billion. Against this background, American financial sector regulators are working to assess the risks and opportunities that cryptocurrencies may pose for the US financial system. It is assumed that several reports will be submitted on the results of the work done in the coming months.

In July this year, US Treasury Secretary Janet Yellen said the government must act quickly to quickly create a regulatory framework for stablecoins. As part of accelerating work in this direction, officials held a series of meetings with representatives of the financial sector to discuss potential options for regulating stablecoins. Among other things, officials were interested in the need to introduce regulation if stablecoins become extremely popular.

They discussed the issues of measures to reduce risks in the event that people begin to massively cash out stablecoins, the need to support the main cryptocurrency assets using traditional means of payment was considered. Also, questions were raised regarding the structuring of stableblocks, options for their use, the need to refine the existing regulatory framework, etc.

About the author

Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

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