Treasury Secretary Janet Yellen held a meeting with federal regulators to discuss the need to come up with plans to regulate stablecoins.
Yellen met on Monday with the President’s Working Group on Financial Markets, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation, according to the Treasury Department.
The eight people present discussed stablecoins’ rapid growth in popularity, payment uses, and risks, including to national security and the financial system. Yellen told those at the meeting, including Federal Reserve Chairman Jerome Powell, that the United States needs to “act quickly” to implement a regulatory framework.
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“The group also heard a presentation from Treasury staff on the preparation of a report on stablecoins, which would discuss their potential benefits and risks, the current U.S. regulatory framework, and the development of recommendations for addressing any regulatory gaps,” Yellen’s office said in a readout of the meeting.
Stablecoins are a type of cryptocurrency that has generated attention in recent months. Stablecoins, such as Tether and USD Coin, have their value tied to another asset class, such as gold or fiat currency, and don’t fluctuate as wildly in value when compared to other cryptocurrencies, like Bitcoin, because they are asset-backed.
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Powell was asked about stablecoins during two hearings he attended on Capitol Hill last week. He told lawmakers that it is “very important” to regulate them.
