Janet Yellen is the U.S. Treasury secretary and is urging legislators to regulate stablecoins quickly. He believes that the government should act fast on this matter.
According to a brief readout of the meeting Secretary Yellen “understood that it was important to act quickly to ensure an appropriate U.S. regulatory environment” for stablecoins.
Janet Yellen has a view on stablecoins
Yellen made this statement on Monday at the meeting of the Presidential Financial Markets Working Group. The team discussed stablecoin’s rapid growth and made plans to make regulatory recommendations. Reuters confirms that the legislation will be in place in the next months.
The group also looked at how stablecoins could be used to pay for goods and services. It also considered possible threats to end-users and the more significant impact of the US market on the US’s financial system and national security.
Yellen warned the US in February that cryptocurrency assets were being misused. She also acknowledged the positive aspects of blockchain and cautioned that “online drug traffickers could use cryptocurrencies to launder money and aid terrorist financing.”
It is extraordinary and positive that us financial policy leaders are taking up this issue. It’s a sign of how far we’ve come and how quickly it all happens,he added.
Market regulation and stablecoins
According to CoinGecko data, the top three U.S. dollar-pegged stablecoins, Tether, USDC, and Binance USD, have a combined market capitalization of more than $100 billion. Their rise has prompted concern among U.S. regulators.
As decentralized financing demand has grown, the stablecoin market has seen a massive increase in growth. This has prompted politicians to regulate the space.
Last week, Federal Reserve Chair Jerome Powell spoke out about stablecoins and stressed the importance of establishing a robust regulatory framework for “stable cryptocurrency.”
If they are to be a significant part of the payments world, we need an appropriate regulatory framework that, frankly, we do not have,he added.
Tetherproject is the most controversial player in this market. This stablecoin has been accused of having no dollar coverage.
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