Janet Yellen recently planned a meeting with the President’s Working Group. Now after the meeting, Yallen shared many points about stablecoin ecosystem and she pointed out many negative and positive impacts that may arise in future and suggested to take some necessary action.
The U.S. Treasury Secretary Janet Yellen met with the President’s Working Group on Financial Markets in a meeting which was pre-planned by her on saturday. The main goal of the meeting was to discuss the stablecoin and risks associated with that.
In the meeting main members were Gary Gensler (Chairman of the SEC), Michael J. Hsu (Comptroller of the Currency), Rostin Behnam (Chairman of the Commodity Futures Trading Commission), and Jerome Powell.
In the meeting Janet Yellen said that regulators needed to take quick action against the rapidly growing market of stable coin & their ecosystem.
Yellen stated on stable coin:
“the need to act quickly to ensure there is an appropriate U.S. regulatory framework in place” to mitigate risks”
While in the meeting discussion was not totally against Stable coin. In the very starting they talked about the use of stable coin and also at another side which was negative, they discussed on regulation. They figured out that stablecoins may be risky for their Monetary system and also challenging for their security of the financial ecosystem.
The meeting reports suggest that with the benefit of Stable coins we have to fill those gaps which are security issues for traditional financial infrastructure. Through their discussion they tried to claim that they can lower the risk of Stable coins through the existing regulatory framework on crypto assets but further new regulatory action needed so that they can restrict all stable coins with better perfection.
It is worth to notice, many Monetary Authorities are in tension with Stable coin. They want to take better action against them so that they can regulate them perfectly under a framework. The latest news came from the Social Science Research Network (SSRN) by a professor from Yale and member of the Board of Governors of the Federal Reserve authority, where they said that it is necessary to take a deep overview in stablecoins ecosystem to regulate them. Check the full report here