Yet another government official is waking up to Bitcoin’s significance beyond its role as an asset. Rand Paul – Republican senator and well-known libertarian – recently questioned whether “cryptocurrency” could become the world reserve currency. As Bitcoin gains traction and legitimacy around the world, this reality grows ever-more plausible. Weakening Trust in Government Money Rand Paul aired his thoughts in an interview with Axios on Friday. The senator surmised that as trust in government decreases, “cryptocurrency” could “actually become the…
U.S. top regulators earmark Tether and its counterparts on allegations that they are too risky. The treasury’s hands are also full since it is drafting recommendations for crypto regulation. According to anonymous sources, the treasury aims to secure crypto transactions.
Stablecoins Pose a ‘Big Risks’ for The U.S. to Ignore
As per Bloomberg, ensuring reliable and safe crypto transactions is the ultimate goal for the treasury. The regulators are also worried that the ever-rising sales on crypto-assets may disrupt the world’s financial order.
Cryptos face a critical period in their development cycle where the U.S. is planning for their monitoring. The treasury currently works to determine whether Stablecoins pose any risk to the country’s financial stability. Therefore, its report is crucial in monitoring them.
The treasury is doing its homework to find out everything about Stablecoin transactions. The institution also wants to find out whether Stablecoin transactions are subject to changes in the market conditions. According to Bloomberg, the treasury is yet to agree on regulation ideas on Stablecoins backed by S&P 500.
As per Tomicah Tillemann, the early steps of creating regulations for cryptos that are going on now are very consequential. Tillemann was an aide to Joe Biden during his time as a senator. Now, Tillemann is the new global policy leader at a crypto fund that Andreessen Horowitz runs.
The treasury will hand in its report to the President’s Task Force on Financial markets. This task force has significant officials, including Federal Reserve chair Jerome Powell and Treasury secretary Janet Yellen.
The U.S. Treasury’s Plans for Stablecoins
The push to act on Stablecoins has been underway for some time now. On the 26th of July 2021, Senator Elizabeth Warren wrote to Janet Yellen on Stablecoins that their investors are highly susceptible. She added that if the U.S. takes too long to draft proper regulations, the financial system will be at risk.
The Financial Stability Oversight Council (FSOC) works to determine whether certain companies or activities threaten financial stability in America. The organization is officially investigating stablecoins. And, in the light of an unfavorable FSOC report, they could meet their end.