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Tuesday, April 23, 2024

US treasury wants official stablecoin verification

U.S. financial regulators, led by the Treasury Department, have started investigating crypto-asset operators under the leadership of Secretary Janet Yellen. The company Tether and the USDT stablecoin issued to it will be particularly verified, as they are the main players in the cryptocurrency market. According to Treasury officials, it is they who represent the greatest danger. 

According to experts, US regulators are bracing for further restrictions on the crypto-asset industry. And this is what explains their desire to proceed with official stablecoin verification.

According to fxstreet.com, the US Treasury Department will report on the risks of stablecoins, a presidential task force overseeing financial markets. This report is expected to lay the groundwork for a new approach to the crypto-asset industry in the country.

Tether and other US Dollar (USD) backed stablecoins are among the most traded cryptocurrencies in the industry. The rate of these tokens is tied to the US Dollar, so traders often use them to wait for the price of Bitcoin (BTC) and other cryptoassets to drop. However, regulators are concerned about this situation and believe that stablecoins can be used to manipulate the markets.

Secretary of State Janet Yellen has previously called on the Presidential Financial Markets Task Force (PWG) to consider strengthening the regulation of stablecoins. She advised creating an appropriate regulatory framework in the United States. These conversations have been taking place since July 19. Next, a group of major financial regulators, including Yellen, Federal Reserve Chairman Jerome Powell, and Securities and Exchange Commission (SEC) chief Gary Gensler, met to discuss their approach to stablecoins. 

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According to a recent Bloomberg report, the Treasury and other government departments are set to investigate whether stablecoins threaten financial stability.

This is confirmed by data from Reuters. The agency writes that last week, Treasury officials already met with regulators from other financial institutions on the coordination of stablecoins and other crypto assets. The outcome of the meeting was agreement on a formal investigation by the Financial Stability Supervisory Board to determine whether stablecoins pose a threat to the U.S. economy.

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