The media has learned of the US authorities' plans to equate steblecoin issuers with banks
US President Joe Biden's administration is considering including stablcoin issuers in the legal framework. They could face the same requirements used to regulate the banking industry, The Wall Street Journal reported, citing knowledgeable sources.
The publication's interlocutors expect that the Biden administration will also ask Congress to consider a bill to create a special statute for stablecoin companies. The measures are intended to allay regulators' concerns about the risks associated with the proliferation of these digital assets.
The US Treasury Department is also interested in tightening controls on the segment, sources said. They noted that the Financial Stability Oversight Council (FSOC) has been advised that stablocoin-related activity should be recognised as systemically important.
This could lead to the Fed issuing stricter risk management standards for such entities while they are not federally regulated.
The FSOC includes the US Treasury Secretary, the Fed, the SEC, the CFTS and several other supervisory agencies.
According to the WSJ, interaction with the Council is not a priority as developing specific requirements is a time-consuming process. The recommendations will be included in the report of the US President's Working Group on Financial Markets. The latter includes Treasury Secretary Janet Yellen, Fed Chair Jerome Powell and SEC head Gary Gensler.
The administration will propose to Congress that stablocoin issuers be included in banking regulation. This development is her preferred option, WSJ sources said.
In July, Secretary Yellen called for an acceleration in the development of a regulatory framework for stablocoins.
In September, the U.S. Treasury Department discussed the risks and benefits of stablecoins with representatives of the banking community and credit unions, according to media reports. In the same month, information appeared about the Treasury Department's intention to require issuers of stablcoins to ensure their free conversion into fiat.
Gary Gensler called stabelcoins "poker chips for casinos in the Wild West", and the US Senate said that these digital assets should be fully cash-backed.
As a reminder, Powell said that the Fed does not intend to ban cryptocurrencies, but plans to include stablcoys in the legal framework.