In recent times, financial regulators have been trying to determine the future of stablecoins as it might possibly pose dangers to fiat currencies later on.
This was evident in the 4-paged release of the President’s Working Group some days ago, which addressed the need for proper regulatory compliance for stablecoins. Asides from that, even Japan is trying to awaken global regulators concerning how stablecoins might be detrimental to the traditional financial system.
Sequel to this, Janet Yellen—who is the US Secretary of the Treasury—is convening key governmental agencies to discuss the “interagency work on stablecoins”.
She scheduled this meeting to be held on Monday, July 19. According to the release, three agencies will be present in this meeting: President’s Working Group on Financial Markets (PWG), the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency.
This meeting will carry out a risk assessment for stablecoins and suggestions to eliminate or reduce those risks.
While commenting on the cruciality of this meeting, Janet Yellen noted thus: “In light of the rapid growth in digital assets, it is important for the agencies to collaborate on the regulation of this sector and the development of any recommendations for new authorities.”
Thus, the future of stablecoins in terms of regulation will be hinged on the conclusions of this meeting.