The US Treasury Department held several meetings to discuss the regulation of private stablecoins, their risks, benefits, and how they can be best used.
Washington officials are alarmed that the cryptocurrency market is growing rapidly. Therefore, it is necessary to start more actively working on this issue.
It is important for the Treasury to understand whether control over stablecoins will be required if widely distributed. In addition, it is necessary to reduce the risks if at some point a lot of people want to suddenly withdraw stablecoins. Also, the Treasury does not understand whether they should be supported by traditional assets.
Prior to this, the Treasury held meetings with banks and credit unions.
MasterCard recently talked about supporting stablecoin. US Senator Elizabeth Warren said the cryptocurrency market is a “new shadow bank” and US banks need to hold reserves to support private stablecoins.