• Contact
  • Privacy Policy
  • Advertise With Us
  • Login
  • Register
Your Trading Edge Magazine
Advertisement
  • 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
6
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

Oil Company Gazpromneft To Launch a Cryptocurrency Mining Operation With BitRiver
Crypto News

Russia’s Central Bank Paves Way for Nationwide Adoption of CBDC by 2025

September 24, 2023
4
Analysts Split – Rally to $1.80 or Dip to $0.41?
Crypto News

Analysts Split – Rally to $1.80 or Dip to $0.41?

September 24, 2023
3
ATOM Surges 13% in 1 week; Can QUBE & ATOM Be September’s Top Earners?
Crypto News

ATOM Surges 13% in 1 week; Can QUBE & ATOM Be September’s Top Earners?

September 24, 2023
6
Coinbase is largest Bitcoin (BTC) holder in the world: Arkham
Crypto News

Coinbase is largest Bitcoin (BTC) holder in the world: Arkham

September 24, 2023
3
Betting Big on Bitcoin Was a Short-Term Mistake, Admits Scaramucci
Crypto News

Why Anthony Scarmucci Is Bullish on Bitcoin Despite Bear Market

September 23, 2023
6
Next Post
‘Any publicity is good publicity’

'Any publicity is good publicity'

Recommended

Bitcoin spot ETF? Expert says SEC has “very little wiggle room”

Bitcoin spot ETF? Expert says SEC has “very little wiggle room”

August 31, 2023
5
Fed Chair Jerome Powell discusses target interest and inflation rates at Jackson Hole summit

Fed Chair Jerome Powell discusses target interest and inflation rates at Jackson Hole summit

August 26, 2023
4
SEC commissioner Hester Peirce calls watchdog’s public accounting warning into question

SEC Commissioners Peirce, Uyeda push back against SEC’s NFT enforcement action

August 29, 2023
4
Supply Chain Evolution: The Role of Blockchain in Logistics

Supply Chain Evolution: The Role of Blockchain in Logistics

September 14, 2023
6
Mysterious self-proclaimed Binance stakeholder “Eeon” seeks to intervene in SEC’s suit against the exchange

SEC’s sealed motion against Binance could be related to DOJ charges: Former SEC official

August 30, 2023
8
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!

  • Russia’s Central Bank Paves Way for Nationwide Adoption of CBDC by 2025
  • Analysts Split – Rally to $1.80 or Dip to $0.41?
  • ATOM Surges 13% in 1 week; Can QUBE & ATOM Be September’s Top Earners?

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?