Move Towards Stablecoin Regulation Picks Up Pace In U.S.

Regulators and policy makers across the world continue to focus on stablecoins, which are cryptoassets pegged to the value of the U.S. dollar or other reserve assets. We have previously reported on international efforts to establish a global regulatory framework for stablecoins. Last month, the U.S. President's Working Group on Financial Markets (the Working Group) published a Report on Stablecoins, [PDF] which recommends that Congress urgently enact legislation that would subject stablecoins to a prudential framework and limit stablecoin issuance to insured depository institutions.

On November 23, 2021, Sen. Sherrod Brown, Chair of the U.S. Senate Committee on Banking sent letters to stablecoin issuers and exchanges requesting information on the risks to consumers, investors, and markets. The letters referred to the Working Group's report.