Regarding the Stablecoin PWG report, what has the Biden administration responded to?
The long-awaited regulatory report led by the U.S. Department of the Treasury has called for more regulation around stablecoins.
The U.S. President’s Working Group on Financial Markets (PWG) believes that “stablecoins can be used more widely as a means of payment in the future.”
It was in this context that Treasury Secretary Janet L. Yellen commented: “Well-designed and properly supervised stablecoins have the potential to be beneficial payment options. But lack of proper oversight creates risks for users and the financial system。”
Yellen also called current regulation "inconsistent and fragmented" and hopes to work with U.S. lawmakers to change that.
It is worth noting, however, that the report quickly attracted a lot of comment. For example, Rep. Tom Emmer shared some of his initial thoughts.
According to Tom Emmer, “this report related to stablecoins shows thatThe PWG appears to be trying to force Congress to choose between handing over regulatory power to a bureaucracy, and risking crypto innovation being wiped out by an unchecked Financial Stability Oversight Board。”
At the same time, another key requirement of the report is that “stablecoins issuers need to be insured depository institutions”. This essentially means that issuers should be regulated like banks.
In response to the report, Comptroller of the Currency Michael J. Hsu commented: "I fully support the report's views. Stablecoins need federal prudential regulation to develop safely. Interagency cooperation needs to identify the risks of stablecoins operation as a top concern. "
The report also touches on issues of regulators and jurisdiction. The report states, "In addition to existing AML/CFT regulations, the arrangement and operation of stablecoins may involve the jurisdiction of the SEC and CFTC。”
At the same time, the U.S. Treasury Department stated that under the premise of maintaining market integrity and protecting investors, activities related to digital assets fall under the jurisdiction of the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
In short, it proposes giving the SEC and CFTC broader enforcement and oversight powers.
Todd Phillips, director of financial regulation at the Center for American Progress, responded on Twitter, "It is worrying that the report points to the need to address risks legislatively without taking much time to consider the regulator's existing mandate. I think this is a very questionable report because the recommendations really only look at what Congress can do, not the current powers of regulators. "
Additionally, the report goes a step further by calling for legislation on “custodial wallet providers” and the regulation of issuers.
The report states that “Congress should also empower federal agencies that regulate issuers of stablecoins to require that any entity that engages in activities essential to the operation of stablecoins meet appropriate risk management standards.”
To address "systemic risk and concentration of economic power," the report also proposes limiting linkages between issuers and commercial entities.
The original text comes from ambcrypto, compiled and organized by Blockchain Knight, the English copyright belongs to the original author, please contact the compiler for Chinese reprint.
The original text comes from ambcrypto, compiled and organized by Blockchain Knight, the English copyright belongs to the original author, please contact the compiler for Chinese reprint.
