Stablecoin transactions and their impact on financial stability are a great concert for Treasury officials
The U.S. Treasury Department is working on a report on stablecoins and the possible risks associated with them to the financial system, Reported on Thursday.
They will present this report to President’s Working Group for Financial Markets. It is still unclear when the working group will meet.
The team of top financial regulators met last on 19th July 2021. The team includes Treasury Secretary Janet Yellen, Federal Reserve Chairman Jerome Powell and Securities and Exchange Commission (SEC) Chairman Gary Gensler, and other regulators. In this meeting, the Treasury staff presented their approach to this report.
AS per Reuters report, Treasury officials met representatives from financial institutions last week. They discussed the regulation of stablecoin and other crypto issues.
Capitol Hill crackdown?
The federal government is closely watching over the crypto industry, with SEC Chair Gensler from the last few months. They are discussing mainly regulatory gaps that he notices in the sector.
These gaps comprise the lack of a single federal regulator to watch over crypto spot trading markets and investor protection issues. Moreover, Sources tell EtherDesk, a burgeoning turf war over crypto regulation is a matter of anxiety among industry participants.
The Treasury Department is trying to capture certain types of crypto transactions for tax purposes. A provision in the U.S. Senate bill will expand the definition of a broker for tax reporting purposes. According to critics, the definition is unnecessarily broad, and there are chances that it would capture entities that don’t facilitate transactions for customers.
On 27th September, The House of Representatives is set to vote on this bill.