WASHINGTON: US Treasury Secretary Janet Yellen announced on Friday that she will meet with regulators next week to discuss “interagency work” on stablecoins, a rapidly growing class of digital currencies that is facing growing scrutiny from policymakers.
The President’s Working Group on Financial Markets will meet on Monday with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation to go over the benefits and risks of stablecoins, a form of cryptocurrencies that are pegged to more traditional assets, including fiat currencies such as the dollar.
“In light of the rapid growth in digital assets, it is important for the agencies to collaborate on the regulation of this sector and the development of any recommendations for new authorities,” Yellen said in a statement, noting it was important for regulators to assess the potential benefits of stablecoins while also “mitigating risks they could pose to users, markets, or the financial system.” Stablecoins and other digital payments options are receiving more attention from lawmakers, Federal Reserve officials and other policymakers as new options emerge and gain traction. — Reuters
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