Yellen-led regulators plan stablecoin recommendations within months

[Hydrogen]

Treasury Secretary Janet Yellen held a meeting with federal regulators to discuss the need to come up with plans to regulate stablecoins.

Yellen met on Monday with the President’s Working Group on Financial Markets, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation, according to the Treasury Department.

The eight people present discussed stablecoins’ rapid growth in popularity, payment uses, and risks, including to national security and the financial system. Yellen told those at the meeting, including Federal Reserve Chairman Jerome Powell, that the United States needs to “act quickly” to implement a regulatory framework.

“The group also heard a presentation from Treasury staff on the preparation of a report on stablecoins, which would discuss their potential benefits and risks, the current U.S. regulatory framework, and the development of recommendations for addressing any regulatory gaps,” Yellen’s office said in a readout of the meeting.

Stablecoins are a type of cryptocurrency that has generated attention in recent months. Stablecoins, such as Tether and USD Coin, have their value tied to another asset class, such as gold or fiat currency, and don’t fluctuate as wildly in value when compared to other cryptocurrencies, like Bitcoin, because they are asset-backed.

Powell was asked about stablecoins during two hearings he attended on Capitol Hill last week. He told lawmakers that it is “very important” to regulate them.

https://news.yahoo.com/yellen-led-regulators-plan-stablecoin-205800643.html

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Tether is outright banned in the USA. This discussion revolves around other stablecoins in america.

Its an interesting topic. The only thing tether can be used for is purchasing bitcoin. Other stablecoins are intended to fill other market niches. The US tether ban prevents many americans from using tether to buy bitcoin. Additional regulation on stablecoins could have an identical effect.

If this basic overview is accurate, the end effect will diminish purchasing volume of cryptocurrencies. Which will translate to reduced demand and a price drop. On the opposite end of the spectrum, rising inflation could expand the size of the crypto userbase, which would be correlated with rising demand, and price increase trending in the opposite direction.

The motive behind frantic fed regulation of stablecoins is in question here. Its no big secret that federal reserve chairman normally have history in the banking industry. Would that be grounds for many to cite a conflict of interest?

[stompix]

Jerome Powell:

“You wouldn't need stablecoins, you wouldn't need cryptocurrencies if you had a digital U.S. currency

Both Gensler and Behnam have talked much about the need to regulate those especially stable coins issued by exchanges so adding Yellen in the mix and I don't see any bright future for non-state-issued stablecoins coming out of these. Oh, and on top of that, we have Maxine Waters as head of the House Committee on Financial Services and she has her own Crypto Working Group.

Whoever thinks this will be good for stablecoins when it's clear most of the people now in power see them as a threat for the dollar is going to have one hell of a wake-up call.

[paxmao]

Unfortunately or fortunately the wild west is becoming more like the West Coast. Tether dealt a huge blow to the credibility of the stable coins, or better said, coins that are "fiat-stabilised" by pegging the value, which is not in my view a real stable coin - which would be related to a basket of goods and services. Anyway, there are good reasons for the OPs news and even if we do not like intervention in the crypto world, it is going to happen because there is always someone that will try to take advantage until that happens.

[Vishnu.Reang]

Jerome Powell:

“You wouldn't need stablecoins, you wouldn't need cryptocurrencies if you had a digital U.S. currency

Both Gensler and Behnam have talked much about the need to regulate those especially stable coins issued by exchanges so adding Yellen in the mix and I don't see any bright future for non-state-issued stablecoins coming out of these. Oh, and on top of that, we have Maxine Waters as head of the House Committee on Financial Services and she has her own Crypto Working Group.

Whoever thinks this will be good for stablecoins when it's clear most of the people now in power see them as a threat for the dollar is going to have one hell of a wake-up call.

This is the same language that was used by the authorities in China, before they started their crackdown on cryptocurrency. The argument was same. Since their digital Yuan (eCNY) shitcoin is available, cryptocurrencies such as BTC are no longer needed. Well, in a democratic country, it is up to the people to decide which one they want to use. I was thinking that United States is a country which values personal liberties, but increasingly it looks like I am wrong. We can expect actions similar to what they had in China, as long as people like Janet Yellen and Elizabeth Warren are in power.

[Sterbens]

The US doesn't need Tether, which is why they use Tether as payment for using digital transactions. The first is only the function and value of Tether and Dollar are almost the same. look at the exchange rates of other countries that use the Dollar as a benchmark, it will still have the same value when compared to Tether. obviously the US would really hate their money being lumped in with Tether.

They will find a way so that every citizen can use official finances to buy Bitcoin in any amount. with indications of smoothing out the US financial transaction system on a large scale. Of course buying Bitcoin will be very profitable if you buy it with Dollars.

And the problem lies in the stable value of the Tether coin itself, which makes the Dollar the benchmark. sometimes the same thing for most people who don't really care about the dollar. maybe they will say the value of Dollar and Tether is the same.