Innovation and compliance coexist, PWG releases regulatory instructions for US stablecoin issuers
Editor's Note: This article comes fromGolden Finance, reprinted by Odaily with authorization.
Editor's Note: This article comes from
Golden Finance
Golden Finance
, reprinted by Odaily with authorization.
Stablecoins are one of the most concerned areas of cryptocurrency industry regulation in 2020. On Wednesday (December 23), local time in the United States, the President’s Financial Market Working Group (PWG) issued a statement on stablecoin regulation.
The President's Working Group on Financial Markets includes representatives from the Treasury Department, the Federal Reserve, the Securities and Exchange Commission and the Commodity Futures Trading Commission. However, for stablecoin regulation, the organization’s view does not seem to have much revolutionary significance. It still generally emphasizes that stablecoin issuers need to comply with the requirements of financial regulations and all typical rules, and at the same time require stablecoin issuers to have appropriate requirements. A system in place to comply with all anti-money laundering requirements before releasing stablecoins to the market.
In addition, the U.S. President’s Financial Market Working Group did not clearly indicate whether stablecoins are currencies or commodities, so the regulation of stablecoin issuers may not be as strict as securities products or financial derivatives. Instead, the U.S. President’s Task Force on Financial Markets seems to be deliberately sidestepping the topic, saying:
“Depending on the stablecoin design and other factors, it may be considered a security, commodity and/or derivative, and therefore subject to U.S. federal securities, commodity and/or derivative laws.”
Not only that, the U.S. President’s Financial Markets Task Force also quoted Justin Muzinich, U.S. Treasury Undersecretary, in a related statement:
"This statement reflects a commitment to the United States to promote innovation, focus on the vital interests of all parties, and achieve key goals related to national security and financial stability."
