U.S. Treasury Secretary Yellen believes that action should be taken quickly to deal with the stablecoin market
on the basis of,
on the basis of,Current U.S. Treasury Secretary Janet Yellen held a meeting with regulators on Monday to discuss the role of stablecoins in the financial sector。
Attendance will include members of the President's Financial Markets Task Force, the Office of the Comptroller of the Currency and the FDIC.
Yellen emphasized,It is important for regulators to come together to assess the risks and benefits of stablecoins to the financial system, because the current stable currency is growing rapidly without clear regulations.
In a statement on Friday, Yellen noted: “Bringing regulators together will allow us to assess the potential benefits of stablecoins while mitigating the risks they may pose to users, markets, or the financial system. Given digital asset rapid growth, the agencies must work together to regulate and develop recommendations for the sector."
A CNBC report noted that, for some time,Regulators have expressed concerns about the transparency of stablecoins, the underlying reserves behind them, and the extent to which they are relied upon, especially on DeFi-related platforms.
It’s worth noting that stablecoins don’t seem to have a good reputation when it comes to transparency. CryptoWhale said in a tweet that a request from the Californian financial regulator to interested parties was responded to, noting that there are no documents supporting USDT and USDC, two stablecoins in the top 10 Crypto by market capitalization, with corresponding reserves. currency.
CryptoWhale tweeted on July 17, "California financial regulators say they don't have any documentation to indicate what Tether is backing USDT or USDC.
It's worth noting that this isn't the first time it's been censored. Presumably, the stablecoin is pegged 1:1 to the U.S. dollar and is essentially a digital dollar,Helps provide liquidity and provides a widely recognized token that facilitates transactions between various Cryptos, sometimes surpassing the transaction volume of Bitcoin.
The main concern raised is that while Tether claims it mints new tokens to meet demand, critics argue that Tether is part of a complex scam that essentially boils down to using the company's internal currency to buy bitcoin. coins, and the expected side effect is to increase the price of bitcoin and otherwise boost the crypto currency market.
Regulatory requirements for auditing stablecoins and the corporate reserves behind them have also not been enforced.
As stablecoins play a key role in Crypto market liquidity, they are expected to be as transparent as possible. If the investigation finds otherwise, the consequences for the crypto market could be dire.
The original text comes from zycrypto, compiled and organized by Blockchain Knight, the English copyright belongs to the original author, please contact the editor for Chinese reprint.
The original text comes from zycrypto, compiled and organized by Blockchain Knight, the English copyright belongs to the original author, please contact the editor for Chinese reprint.
