{"id":12046,"date":"2021-09-13T08:54:03","date_gmt":"2021-09-13T08:54:03","guid":{"rendered":"https:\/\/www.buyucoin.com\/crypto-labs\/us-treasury-department-officials-discuss-risks-and-benefits-posed-by-stablecoins-with-players-from-financial-industry\/"},"modified":"2021-09-13T08:54:03","modified_gmt":"2021-09-13T08:54:03","slug":"us-treasury-department-officials-discuss-risks-and-benefits-posed-by-stablecoins-with-players-from-financial-industry","status":"publish","type":"post","link":"https:\/\/www.buyucoin.com\/crypto-labs\/us-treasury-department-officials-discuss-risks-and-benefits-posed-by-stablecoins-with-players-from-financial-industry\/","title":{"rendered":"US Treasury Department Officials Discuss \u2018Risks and Benefits Posed by Stablecoins\u2019 With Players From Financial Industry"},"content":{"rendered":"

The U.S. Treasury Department is reported to have held meetings with participants from the country\u2019s financial industry to discuss \u201cthe risks and benefits posed by stablecoins.\u201d In addition, officials are said to have used the meetings to discuss \u201cwhether stablecoins would require direct oversight if they become extremely popular.\u201d<\/strong><\/p>\n

Policymakers Alarmed by Growth of Crypto Market<\/h2>\n

According to a report<\/a>, the meetings come on the heels of a \u201crapidly expanding cryptocurrency market which exceeded a record $2 trillion in April.\u201d This rapid growth of both cryptocurrencies and stablecoins has reportedly alarmed policymakers in Washington. It has also alarmed central bankers like Boston Federal Reserve President Eric Rosengren who asserts<\/a> that stablecoins could be a \u201cdisruptor\u201d to prime money market funds.<\/p>\n

Consequently, in one of the two meetings held last week, the U.S. Treasury officials and players in the financial industry are said to have \u201cdiscussed how regulators should try to mitigate the risks of too many people trying to cash in their stablecoins at the same time.\u201d They also discussed whether major stablecoins should be backed by traditional assets.<\/p>\n

This Friday meeting between Treasury officials and industry participants comes as reports suggest U.S. financial regulators are now working to understand the risks and opportunities posed by cryptocurrencies to the traditional U.S. financial system. The officials are also believed to have met with a group of banks and credit unions to discuss similar issues, at a meeting earlier in the week.<\/p>\n

<\/p>\n

Regulators Monitoring Stablecoins<\/h2>\n

The report, which quotes an anonymous source, said officials from the U.S. Treasury Department also quizzed the industry participants \u201cabout how stablecoins should be structured, how they could be used, whether the current regulatory framework is sufficient, and other safety and soundness issues.\u201d<\/p>\n

The report explains, however, that \u201cofficials appeared to be gathering information and did not share their thinking on how stablecoins should be regulated.\u201d Nevertheless, there is an expectation that the information gathered will \u201clikely help shape a broad Treasury report on stablecoins expected in the coming months.\u201d<\/p>\n

Do you believe that stablecoins should be regulated? Tell us what you think in the comments section below. <\/strong><\/em><\/p>\n

Bitcoin News
\nRegulation, crypto growth, crypto market, crypto regulatory framework, Cryptocurrencies, Eric Rosengren, financial industry, Stablecoins, US financial system, us treasury department<\/p>\n","protected":false},"excerpt":{"rendered":"

The U.S. Treasury Department is reported to have held meetings with participants from the country\u2019s financial industry to discuss \u201cthe risks and benefits posed by stablecoins.\u201d In addition, officials are said to have used the meetings to discuss \u201cwhether stablecoins would require direct oversight if they become extremely popular.\u201d Policymakers Alarmed by Growth of Crypto…<\/p>\n","protected":false},"author":0,"featured_media":12047,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53,3],"tags":[],"class_list":["post-12046","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain-news","category-coin-news"],"_links":{"self":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/12046"}],"collection":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/comments?post=12046"}],"version-history":[{"count":0,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/12046\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media\/12047"}],"wp:attachment":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media?parent=12046"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/categories?post=12046"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/tags?post=12046"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}