US Treasury Secretary Janet Yellen Urges Swift Stablecoin Regulation

The U.S. Treasury Secretary Janet Yellen urged swifter development of a regulatory framework for stablecoins. She said this at a заседании of the President’s Working Group on Financial Markets (PWG).

Participants at the meeting discussed the rapid growth of stablecoins, their use as a means of payment, and potential risks to end users, the financial system and national security.

Such aspects, together with an analysis of the existing regulatory framework for gaps in the law, will be reflected in the recommendations. The group plans to publish the document in the coming months.

The PWG was formed by representatives of the Federal Deposit Insurance Corporation, ФРС, SEC, CFTC, the Department of the Treasury, and the Office of the Comptroller of the Currency, which is part of the latter.

On July 15, the head of the Federal Reserve Jerome Powell was skeptical about the need for stablecoins. He compared stablecoins to money market funds and savings banks.

In June, Boston Fed President Eric Rosengren stated that stablecoins threaten the financial system. Vice Chair Randall K. Quarles urged not to fear stablecoins.

A day earlier, a study by Yale economist Gary Gorton and Fed lawyer Jeffrey Zhang predicted a return of the United States to the era of ‘wildcat banking’ in the 19th century in the absence of proper stablecoin regulation.

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