Trump’s Working Group on Financial Markets (PWG) released a statement yesterday to outline the regulatory and supervisory developments on stablecoins. Members of the PWG including Treasury Deputy Secretary, Justin Muzinich welcomed further discussions on the regulatory framework for stablecoins.
According to an official press release by the US Treasury Department, the PWG members recognized the potential of cryptocurrencies to enhance the efficiency of the overall payments system. Additionally, the Group mentioned the importance of a clear regulatory framework for digital assets to maintain the stability of financial and monetary systems.
Commenting on the recent announcement, Justin Muzinich said: “The statement reflects a commitment to both promote the important benefits of innovation and to achieve critical objectives related to national security and financial stability. Regulators will continue to look closely at stablecoin arrangements and look forward to a future dialogue on these issues.”
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The recent statement by Trump’s Working Group came after the SEC charged Ripple Labs along with its two executives for conducting $1.3 billion unregistered securities offering.
The US regulatory authorities have recently released statements on the growing interest in cryptocurrencies in the country. The SEC, FinCEN, and the US Treasury have outlined the importance of having a clear regulatory framework on digital assets. US Congresswoman Rashida Tlaib, along with Congressmen Jesus García and Stephen Lynch introduced a bill earlier this month to protect consumers from risks associated with stabelcoins. The lawmakers introduced the STABLE Act to ensure a regulatory structure for stabelcoin issuers.
“Where stablecoins with a U.S. nexus primarily used for retail payments are adopted at a significant scale in the United States, the associated risks may require additional safeguards to ensure key policy goals such as financial stability, financial integrity, user protection, market integrity, operational resilience, well-functioning payments and trading markets, macroeconomic and monetary stability, and enhanced cross-border cooperation,” Trump’s Working Group on Financial Markets mentioned in the press release.