Amid massive growth of the stablecoin market, the United States Treasury Department has reportedly discussed potential regulation for private stablecoins.
The Treasury conducted several meetings last week to examine the risks of stablecoins for users, markets, or the financial system, as well as learn about their benefits and consider potential regulation, Reuters reported Sept 10.
“The Treasury Department is meeting with a broad range of stakeholders, including consumer advocates, members of Congress and market participants,” Treasury spokesman John Rizzo said.
Citing three anonymous sources familiar with the matter, the report notes that one of the Treasury’s meetings took place last Friday, with officials asking the crypto community whether stablecoins would require direct oversight if this type of cryptocurrency becomes widely adopted. They also reportedly discussed how regulators should mitigate the risks if too many people decide to withdraw their stablecoins all at once, and whether major stablecoins should be backed by traditional assets.
Treasury officials also previously met with a group of banks