Janet Yellen, the current US Treasury Secretary, had a meeting yesterday with the chiefs of several federal agencies, the President’s Working Group for Financial Markets (PWG), to contemplate how precisely they would deal stablecoins. As per the summarization of the said meeting, Yellen stressed the need for stablecoins to have an appropriate US regulatory framework as soon as possible. Following that, several financial regulators then went on to say that their respective recommendations on stablecoin regulations could come as early as the next few months.
With all that said, however, it isn’t still apparent what kind of regulatory framework would fit stablecoins effectively the most. While some suggest that stablecoin must have compulsory Federal Deposit Insurance Corporation (FDIC) insurance and bank regulations, others are looking at the possibility of recognizing stablecoins as securities. As of the moment of writing, there is still no unanimous notion for how stablecoins should be regulated.
The federal agencies present at the meeting include the FDIC, the Commodity Futures Trading Commission (CFTC), and several Treasury executives such as Comptroller Michael Hsu. Yellen, on the other hand, was accommodated by Jay Powell, the Chairman of the Federal Reserves, and Gary Gensler, the Chairman of the US Securities and Exchange Commission (SEC).
Notably, this is the second disclosed meeting of the PWG regarding the future of stablecoins, a testament to the rapidly escalating popularity of stablecoins in today’s market.