President's Working Group To Issue Stablecoin Recommendations

At a meeting of the OCC, FDIC and President's Working Group on Financial Markets ("PWG"), the PWG stated its intent to address regulatory gaps with respect to stablecoins in the coming months. Meeting participants considered possible uses of stablecoins as a method of payment, as well as potential risks to end users and the financial system.

With respect to the regulation of stablecoins, Treasury Secretary Janet L. Yellen emphasized the need to act promptly to make sure the United States has an appropriate framework in place. Treasury staff also delivered a presentation to meeting participants discussing their preparation of a report concerning (i) the possible benefits and risks associated with stablecoins, (ii) the existing U.S. regulatory framework for stablecoins, and (iii) recommendations for further regulation.