Financial Agencies In The US Plan To Meet To Discuss Stablecoins’ Regulation, Benefits, And Risks

USA Financial Agencies will be having talks in an arranged meeting, Discussing the advantages, disadvantages that stablecoins can have, while also having a discussion regarding the regulations to be applied to them.

This meeting has come up just two days after the Chairman of the Federal Reserve, Jerome Powell, said to the house of representatives that there must be additional strict regulations that need to be applied on such stablecoins, so for stablecoins to operate in the system, the correct regulations must be implemented to keep them in check. Digital Assets such as, Cryptocurrencies and stablecoins have had an enormous increase in popularity this year, which has alerted many authorities around the world to take the necessary actions in the observation and regulation of these new types of payment alternatives in the market.

Message from the Secretary

Treasure Secretary of the United States, Janet Yellen, has recent announced that a meeting has been scheduled on the 19th of July, in which several officials from financial agencies will be present to discuss the operation and progress of stablecoins in the country. Agencies include the Presidential Working Group, the Office of the Currency, and the Federal Deposit Insurance Corporation.

Regarding the meeting, Yellen stated that by engaging with the regulators, we could gain access to the potential advantages that stablecoin has, meanwhile dealing with the risks that can affect users or the system. So, as the popularity of these Digital Assets increase, it must be made sure that regulatory authorities come together to proceed with the correct regulations for the development of stablecoins and any other sort of rising assets.

A closer look at Stablecoins

Back in December of last year, the Presidential Working Group said that they would be taking a closer look at the regulations on stablecoins applied as of now in hopes of gathering more information about the risks and rewards of using such technology. Just yesterday, a bill went through to the house, which demanded much clearer information about popular assets such as digital tokens and other new technologies that are currently in development, according to the current laws. The Securities Clarity act would then be implemented in all asset types, even if they are physical or digital.

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