A group of key US financial regulators has released a new statement on stablecoins.
One of the main topics of this year’s news on crypto regulation, Stable coins were the main topic of a declaration by the Presidential Working Group on Financial Markets, PWG for short, on December 23. The PWG includes agents from the Treasury Department, the Federal Reserve, the Securities and Exchange Commission, and the Commodity Futures Trading Commission.
The opinions expressed by the group were not revolutionary, And they mostly said that stable coin issuers had to obey all of the typical laws of the way related to financial law. According to regulators, stable coins must have systems in place that meet all applicable anti-money laundering requirements before they can be put on the market.
In addition, lRegulators did not say that stable coins are necessarily currencies or commodities that are less regulated than securities or derivatives. Instead, they left the question open:
“Depending on its design and other factors, a stablecoin can represent a security, commodity, or derivative that is subject to US federal securities, commodity, and / or derivatives laws.”
The ad quotes the Undersecretary of the Treasury, Justin Muzinich said, “The statement reflects a commitment to both promoting the important benefits of innovation and meeting critical goals related to national security and financial stability.”
It’s a common refrain among regulators handling new technology, but especially among those changing the way money works: responsible innovation. Here, however, it’s interesting to note that stable coin projects have certain systems in place before they get started.
The acting controller of the currency, Brian Brooks said of today’s statement:
“The group achieved a productive equilibrium, recognizing the valuable and important role stablecoin play in our national and global economies and the need to ensure that such financial instruments do not contribute to crime or national insecurity.”
Although the PWG is quite soft, it describes a gentler approach to stable coins than others. A bill recently passed by Representative Rashida Tlaib sparked outrage in the crypto community over the willingness to approach node operators as money service providers.
Similar, For the industry, it was an instance of the Treasury Department at midnight that tried to subject wallets with self-custody to the thresholds of the travel rule. keep a record of ownership.