According to a Monday CNBC report, the President’s Working Group on Financial Markets acknowledged that stablecoins “might” allow for “faster, more efficient, and more inclusive payment options,” but they also called for regulation in a recent document.
Biden administration and stablecoins
According to the paper, “the transition to more widespread use of stablecoins as a payment method may occur rapidly owing to network effects or links between stablecoins and existing user bases or platforms.” As a result, Biden’s economic advisers recommended that the US Congress impose rules on it to protect and educate investors, issuers, and exchanges.
The Biden administration has proposed that the supply of stablecoins should be restricted to insured banks, giving regulators greater control over this asset class.
“Stablecoins must be monitored”
The Chairman of the US Securities and Exchange Commission, Gary Gensler, said that it must be monitored to prevent them from financing criminal activities in a Monday press release. Gensler is also a member of the President’s Working Group on Financial Markets.
The report recommends that “Congress act promptly to enact legislation to ensure that payment stablecoins and payment stablecoin arrangements are subject to a federal prudential framework on a consistent and comprehensive basis.”
