All Consuming – Insights into Financial Processes, Volume 2, Issue 15 | Spilman Thomas & Battle, PLLC
Yellen urges regulators to “act quickly” under stablecoin rules
“New rules would reduce issuers’ profit margins, but in the long term they should help them attract more users.”
Why This Matters: The recent surge in the popularity or market value of stablecoins is causing Treasury Secretary Janet Yellen and other regulators to push for rules on the asset. A stablecoin is a type of digital currency whose value is “pegged to a national currency or commodity and backed by reserves of that underlying asset”. However, with most, if not all, stablecoins, there is little information about what the digital asset actually supports. In view of this and other concerns, the President’s Financial Markets Working Group expects “recommendations in the coming months”. While it is unclear how they intend to regulate stablecoins, it is clear that regulation is needed if stablecoins and other cryptocurrencies continue to become recognized payment options.
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