U.S. Treasury secretary to meet regulators to discuss stablecoins.

Yellen convenes PWG to discuss stablecoins.

The U.S. Treasury Secretary Janet Yellen has convened the President’s Working Group on Financial Markets (PWG) to discuss stablecoins by July 25, according to CNBC.

“In light of the rapid growth of digital assets, it is important that the agencies cooperate in regulating this sector,” said Yellen.

The PWG includes the Department of the Treasury, the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation. At the end of 2020 the Working Group presented recommendations for regulating stablecoins.

“By gathering regulators, we can assess the potential benefits of stablecoins while avoiding the risks they may pose to users, markets or the financial system,” added the head of the U.S. Treasury.

Janet Yellen took over the department in January 2021. Before her appointment she promised to keep a close watch on the cryptocurrency market and to curb the use of digital currencies for illicit purposes.

Earlier, on July 15, Federal Reserve Chair Jerome Powell doubted the need for stablecoins. He compared stablecoins to money-market funds and savings banks.

In June, the President of the Federal Reserve Bank of Boston Eric Rosengren stated that stablecoins threaten the financial system. Vice Chair Randall Quarles urged not to fear stablecoins.

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