Yellen urges quick US adoption of stablecoin rules

US Treasury Secretary Janet Yellen

Treasury Secretary Janet Yellen has told regulators that the US government must move quickly to establish a regulatory framework for stablecoins, a rapidly growing class of digital currencies.

A group of US regulators plans to issue recommendations in the coming months for fixing any regulatory gaps around stablecoins, the Treasury Department said in a statement.

Monday’s meeting of the President’s Working Group on Financial Markets, which convenes top financial watchdogs, underscores how quickly policymakers are moving to ensure their rules can keep up with rapid technological changes across digital currencies.

The group discussed the rapid growth of stablecoins, which are cryptocurrencies that attempt to peg their values to a conventional currency, like the US dollar, according to the Treasury. Regulators discussed their potential uses, as well as risks to end users and the financial system.

Fed Chair Jerome Powell told lawmakers during congressional hearings last week that stablecoins are “growing incredibly fast” but pointed to their lack of appropriate regulation as a point of concern.

The team at Platform Executive hope you have enjoyed this article. Automatic translation from English to a growing list of languages via Google AI Cloud Translation. Initial reporting via our official content partners at Thomson Reuters. Reporting by Pete Schroeder. Editing by Cynthia Osterman.

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