Treasury preps stablecoin framework as officials fear stability, redemption risks: report
September 16, 2021, 5:49PM EDT
1 min read
Citing anonymous sources, Bloomberg reports that a coming Treasury report on stablecoins will highlight risks like the inability to redeem stablecoins for their underlying assets and potential runs on crypto assets as major concerns.
The Treasury report on stablecoins is highly anticipated. Hitherto, stablecoin regulation in the U.S. has happened almost exclusively at the state level. The coming report is expected to set the framework for a new federal approach to the industry.
Fiat-backed stablecoins, and especially those tied to the value of the U.S. dollar, are some of the most traded crypto assets on the market. There are, however, major concerns about the nature of their actual backing and their use in manipulating markets.