As the markets shocked with the lawsuit filed against XRP, bad news came for Stablecoins. You can read my article on what are Stablecoins.
President’s Working Group on Financial Markets has released a report stating that Stablecoins must be subject to regulatory provisions within the financial system in all aspect
President’s Working Group on Financial Markets reported that Stablecoins must meet the requirements set out in regulations on anti-money laundering and money surveillance.
“When a Stablecoin used mainly for retail payments is adopted at a significant scale in the United States, it may require associated risks and additional measures. We encourage interested participants involved in the design of such Stablecoin transactions and risk management to align with the fundamental principles. It was said.
President’s Working Group on Financial Markets includes Treasury Secretary Steven Mnuchin, Federal Reserve Chairman Jerome Powell, Securities and Exchange Commission Chairman Jay Clayton, and Commodity Futures Trading Commission Chairman Heath Tarbert.
The report sees Stablecoins as a threat to "international monetary stability" and suggests action on stablecoins to avoid undermining the confidence in fiat currencies.
Tether (USDT) will suffer the most from regulation. Tether, which holds 76% of the market and is the most used Stablecoin, has been a matter of curiosity about this report.
