U.S. Treasury Secretary Janet Yellen confirmed that she will do a meeting with the regulators of the U.S. The main purpose of the meeting will be discussion on the regulation & risk associated with stable coins.
On 16 July Janet Yellen, who is Secretary of U.S. treasury stated that they planned to organize a meeting on Monday 19 July with the regulatory authorities of the U.S to talk about the Stable Coins.
The main authorities of the U.S will gather in the meeting. These authorities are the Working Group on Financial Markets, the Comptroller of the Currency and the Federal Deposit Insurance Corporation. The main focus of the discussion will be to point out the benefits & risk of stable coin use. And also they will discuss Cryptocurrency which is most likely working as fiat currency dollar, indirectly they said that they will discuss USDT specially because USDT is based on the actual value of USD.
Through the statement, Yellen said:
“Bringing together regulators will enable us to assess the potential benefits of stablecoins while mitigating risks they could pose to users, markets, or the financial system.”
The main responsibility of the working group on financial markets will be to examine the risk associated with StableCoins & necessary recommendations that are needed to restrict/regulate the StableCoins so that they can lower the risk.
Reports also say, the U.S Treasury will publish a recommendations regulation note on stable coin soon in the coming months.
Earlier this decision of meeting on StableCoin,Chair Jerome Powell of Fed stated that they are not able to take action in the popularity & increasing use of stable coins because there are no rules & regulation made for them that can give rights to interfere in this matter.
“If we’re going to have something that looks just like a money-market fund or bank deposit <…> we really ought to have appropriate regulation, and today we don’t.”