• Contact
  • Privacy Policy
  • Advertise With Us
  • Login
  • Register
Your Trading Edge Magazine
  • Home
  • Feature
    • Market Commentary
    • Expert Advice
    • Columns
  • Trading
    • Shares and Trading
    • Technical Analysis
    • Trading Mindset
  • Crypto News
  • Finance
  • Subscribe
No Result
View All Result
  • Home
  • Feature
    • Market Commentary
    • Expert Advice
    • Columns
  • Trading
    • Shares and Trading
    • Technical Analysis
    • Trading Mindset
  • Crypto News
  • Finance
  • Subscribe
No Result
View All Result
Your Trading Edge Magazine
No Result
View All Result

Will The Biden Administration Regulate Stablecoin Issuers As Banks?

October 2, 2021
in Crypto News
Reading Time: 3 mins read
A A
0
Will The Biden Administration Regulate Stablecoin Issuers As Banks?
0
SHARES
5
VIEWS
ShareShareShareShareShare

According to a report by the WSJ, the Biden administration is looking into the possibility of regulating issuers of stablecoins as if they are banks. The administration is also exploring the possibility of asking Congress to come up with legislation that would create a special-purpose charter specifically tailored to these companies.

All the recommendations made by the Biden administration will be included in a treasury-led paper, which is slated for release in October.

Treating Issuers As Banks

Apart from treating stablecoin issuers as banks, the administration will also nudge the firms to register as banks, with the continuous and rapid evolution of the crypto space eliciting significant concern from authorities.

Along with the regulatory strategy, the administration is also considering going to Congress to ask it to propose legislation that would create a special-purpose charter that would be created specifically for these firms. If Congress passes the special-purpose charter, then it would subject stablecoin issuers under federal oversight and not state laws.

Still A Work In Progress

Although the recommendations and proposals are still a work in progress, they will be included in a Treasury-led paper that will be published sometime in late October. The paper is being authored by Treasury Secretary Janet Yellen, Federal Reserve Chairman Jerome Powell, and Securities and Exchange Commission Chairman Gary Gensler. Gensler had recently compared stablecoins to poker chips.

One of the recommendations made by the administration is to have the Financial Stability Oversight Council explore the risks posed by stablecoins to the current financial system. However, according to the WSJ, the administration is leaning towards Congress to act as the Financial Stability Oversight Council can be a little difficult or unwieldy. The Federal Reserve is also set to release its highly anticipated report on the potential digital dollar.

Attracting The Attention Of Regulators

Stablecoins are digital tokens that are often pegged to external assets or currencies such as the US Dollar. Stablecoins make up only a tiny percentage of the $2 trillion digital assets but have attracted attention from regulators thanks to their astonishing growth in a very short amount of time.

Well-known stablecoins such as Tether and Circle have seen a significant increase in valuation, skyrocketing to $110 billion from $11 billion. As a result, they have become a target for regulators who have proposed a slew of strict rules for cryptocurrencies. Securities and Exchange Commission Chairman Gary Gensler has already warned that cryptocurrency investors could potentially get hurt if the crypto space is not given the same protection against fraud and manipulation as present in the banking sector.

On the other hand, Federal Reserve Chairman Jerome Powell told Congress that he believes stablecoins are like money market funds and should be regulated.

“Stablecoins are like money market funds, are like bank deposits, but they’re to some extent outside the regulatory perimeter, and it’s appropriate that they be regulated. Same activity, same regulation.”

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Credit: Source link

ShareTweetSendPinShare
Previous Post

DeFi tokens SUSHI, SNX, UNI emerge as winners after China’s crypto crackdown

Next Post

‘Any publicity is good publicity’

Related Posts

These Are the Two Challenges for XRP Following 30% Recovery in 9 Days (Ripple Price Analysis)
Crypto News

These Are the Two Challenges for XRP Following 30% Recovery in 9 Days (Ripple Price Analysis)

June 27, 2022
6
Top Protocols For DeFi And Cryptocurrency Adoption: Mushe (XMU), PancakeSwap (CAKE), And Aave (AAVE)
Crypto News

Top Protocols For DeFi And Cryptocurrency Adoption: Mushe (XMU), PancakeSwap (CAKE), And Aave (AAVE)

June 26, 2022
7
Axie Infinity to reimburse Ronin bridge victims and reopen the bridge
Crypto News

Axie Infinity to reimburse Ronin bridge victims and reopen the bridge

June 26, 2022
7
85% of Merchants Say Crypto Payments Will Be a Norm by 2026: Deloitte
Crypto News

50% of Latin American Consumers Have Experience Transacting Crypto: Mastercard

June 26, 2022
9
Shiba Inu (SHIB) could drop by around 15% before any bull run
Crypto News

Two top cryptocurrencies that could make a V-shaped recovery

June 26, 2022
4
Next Post
‘Any publicity is good publicity’

'Any publicity is good publicity'

Recommended

The Sandbox rallies on its partnership with Lionsgate

The Sandbox rallies on its partnership with Lionsgate

June 17, 2022
6
Highmark Interactive Inc. Reports Fiscal First Quarter 2022 Financial Results

Highmark Interactive Inc. Reports Fiscal First Quarter 2022 Financial Results

May 28, 2022
6
Port of Vancouver USA Leads the Fight Against Cyber Attacks

Port of Oakland Volume Slumps as Shanghai Struggles

June 1, 2022
5
Two-thirds of investors think oil will be the biggest winner in 2022: survey

Two-thirds of investors think oil will be the biggest winner in 2022: survey

June 15, 2022
5
Best cryptocurrency to buy – Will subnets take AVAX to the moon?

Best cryptocurrency to buy – Will subnets take AVAX to the moon?

June 9, 2022
6
Your Trading Edge Magazine

This is an online news portal that aims to share the latest news about trade, finance, crypto and much more. Feel free to get in touch with us!

What’s New Here!

  • Millennial women on track to make 70% of men’s earnings at age 45
  • These Are the Two Challenges for XRP Following 30% Recovery in 9 Days (Ripple Price Analysis)
  • Stocks pace towards worst start since 1970

Subscribe Now

Loading
  • Contact
  • Privacy Policy
  • Advertise With Us

© 2021 - ytemagazine.com - All rights reserved!

No Result
View All Result
  • Home
  • Feature
    • Market Commentary
    • Expert Advice
    • Columns
  • Trading
    • Shares and Trading
    • Technical Analysis
    • Trading Mindset
  • Crypto News
  • Finance
  • Subscribe

© 2021 - ytemagazine.com - All rights reserved!

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?