Janet Yellen will meet with the Working Group on Financial Markets to discuss stablecoin regulations in the U.S. next week.
Yellen has historically been critical of cryptocurrency; however, she has also acknowledged its potential to improve finance.
It appears that the upcoming discussion will concern commercial stablecoins, not government-backed CBDCs.
Share this article
U.S. Treasury Secretary Janet Yellen will meet with regulators to discuss stablecoins, according to an announcement today.
Workgroup Will Take Place Monday
According to the U.S. Treasury, Yellen will meet with the President’s Working Group on Financial Markets on Monday, July 19.
That group includes members of the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation.
“Bringing together regulators will enable us to assess the potential benefits of stablecoins while mitigating risks,” Yellen stated. She added that government agencies should work together on regulation and create reccomendations for authorities.
The discussion will build on a 2020 statement from the workgroup that discussed similar regulatory matters around stablecoins.
The workgroup does not seem to be concerned with a central bank digital currency (CBDC) or government-issued stablecoins. Rather, it seems to concern regulations around commercial stablecoins.
Is Yellen For or Against Crypto?
Yellen became Secretary of the U.S. Treasury as President Joe Biden took office earlier this year. She was confirmed on Jan. 25, 2021.
Yellen has historically held an anti-cryptocurrency stance, highlighting its use in criminal activity. However, she has also acknowledged that digital currency has the potential to improve the financial system.
Today’s news means that Yellen is slightly more open to digital currency than her past statements may suggest.
However, this news does not necessarily indicate that regulations will change significantly. Currently, entities that simply wish to work with stablecoins are seemingly free to do so. For the most part, cryptocurrency exchanges can legally circulate stablecoins, and the OCC has even granted banks the right to work with stablecoins. Visa has also expressed its intent to offer stablecoin transactions.
One possible regulatory restriction concerns recent guidance from FinCEN that may require stablecoin creators and issuers to operate as Money Service Businesses (MSBs). However, this has not hindered any major stablecoin issuers to date.
Disclaimer: At the time of writing this author held less than $75 of Bitcoin, Ethereum, and altcoins.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
Bitcoin Critic and Economist Janet Yellen Set to Lead U.S. Treasury
According to the Wall Street Journal, former Federal Reserve Chair Janet Yellen could become the next Secretary of the Treasury. President-elect Joe Biden has nominated Yellen for the position. Yellen’s…
What is Impermanent Loss and How can you avoid it?
DeFi has given traders and investors new opportunities to earn on their crypto holdings. One of these ways is by providing liquidity to the Automated Market Makers (AMMs). Instead of holding assets,…
Yellen Clarifies Her Stance On Crypto, Says Digital Assets Have “…
Treasury Secretary Nominee Janet Yellen clarified her stance on crypto in a recent hearing, saying the technology had the potential to improve the current financial system. Yellen Acknowledges the Potential…
Yellen: Crypto Is Used for Terrorism, Money Laundering
Janet Yellen, potential Secretary of the U.S. Treasury, completed her Senate confirmation hearing today. She attacked cryptocurrency for its use in crime and advocated for an improved U.S. dollar exchange…
Be the first to comment