US Presidential Financial Markets Working Group Sees Potential Undersupply of Stablecoins as Threat
Stablecoins (digital coins whose value is pegged to a dollar or other asset) need urgent regulation. This is the conclusion reached by members of the working group on financial markets under the President of the United States. The group, which includes the finance minister and executives from all of the country's leading financial regulators, has published a special report.
The authors of the document are concerned about possible insufficient provision of stablecoins and opaque reserves. In this regard, the authorities plan to limit the list of companies that have the right to issue their own stablecoins. The group proposes to allow only insured depository institutions to issue stablecoins.
Earlier, the Financial Action Task Force on Money Laundering (FATF) published a new version of the digital asset regulation guideline, which sets standards for dealing with the decentralized finance (DeFi) sector and non-fungible tokens (NFT). The regulator urged states to show flexibility in introducing new rules, as market participants experience difficulties in introducing mechanisms to follow the updated standards.