They will discuss regulation of stablecoins and the potential benefits and dangers of the technology.
Janet L. Yellen , U.S. Secretary of the Treasury, announced plans for the President’s Working Group on Financial Markets (or PWG), as well as the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation, to discuss interagency work regarding stablecoins. This meeting will take place Monday, July 19.
Secretary Yellen stated:
“Bringing together regulators will allow us to evaluate the potential benefits and mitigate any risks they may pose to users, markets or the financial system.” Given the rapid growth of digital assets, it is crucial that the agencies collaborate on regulation and development of new authorities.
The PWG declared December 2020 that it would start examining the current regulations for stablecoins to identify and address any potential risks.
This announcement comes just two days after Jerome Powell, Chairman of Federal Reserve, addressed the House of Representatives about the need for stricter regulations regarding stablecoins. Powell stated that stablecoins must be included in the payments universe.
Yesterday, a bipartisan bill introduced itself into the House. It provided a clear definition for assets such as digital tokens and other emerging technology that is covered by current securities law. Securities Clarity Act will apply to all assets, digital and tangible. It states that an investment contract asset is distinct from any offering it might have been part of.