US Treasury Department anticipates report on stablecoins requires immediate regulation of banks by stablecoin issuers. They will continue to monitor potential changes in payment methods. Janet Yellen, Treasury Secretary, stated in the report that current stablecoin oversight was “inconsistent” and “fragmented.”
The report itself raises concerns about the possible instability of a “bank” and the disruption to the old traditional payment system. To ensure that stable currency issuers are in compliance with banking regulations, it is recommended to monitor them quickly. However, it is important to keep an eye on the transformative power that a stable currency has.
Stablecoin Being Attention Center
The issue of comparing currencies and other encryption has been ignore. This is unfortunate for Tether but it will not stop the development of digital dollars. Stable currency issues have People’s market worth exceeding $10 billion, despite slow progress.
The regulator US treasury department report forced to act. According to the report, laws should be passed to require that stable coin issues insure depository banks such as banks.
This is possible for issuers of stable currencies such as Circle (USDC) or Paxos(PAX). Although they have stated their 1:1 USD support infrequent reporting, it is not like Tether. (For companies such as USDT, the USD-backed proportion of less than 4% market value of $52bn makes it difficult to obtain insurance.
US Treasury Department Report Praise Digital Transformation Potential
Report also calls for stable coin legislation that requires custodial wallet providers receive appropriate federal supervision. Also, requires stablecoin issues to adhere to activity restrictions that limit affiliation to commercial entities.
However, this report does not necessarily indicate that bad news has unexpected content. It is positive in many aspects, especially considering that Tether has dragged stablecoin names into a mess.
It also emphasizes the potential for stablecoins. Then, especially important in money-intensive countries like the United States. n also points out that stablecoins “support faster and more efficient payment methods”, which can replace cash in most cases.