Key Takeaways
- In their view, the most urgent issue for the US Treasury is stablecoins.
- The Financial Stability Oversight Council is also examining whether stablecoins pose an economic risk.
- According to the Tether Transparency report, Tether has the largest supply at 69.4 billion.
According to Bloomberg, the authorities are working on a policy framework that will be released to the public in the coming weeks.
The officials have vowed to guarantee that investors could always trust their money will be safe in and out of tokens.
"Certain stable currencies have been growing rapidly and endangering financial stability as well as the stability of crypto-assets in the face of fire-sales," say unidentified insiders.
The Financial Stability Oversight Board is working on a thorough examination of the financial threat presented by stable coins.
According to officials, the focus is on stable coin transactions and market conditions.
It should be noted that: Andreessen Horowitz Tomicah Tillemann, Global Crypto Fund Chief of Policies also commented on the assessment.
“A legal framework for digital assets is both significant and very important. This is a remarkable occurrence." It's a major development”.
After the committee finishes its research, the chair submits the results to the Bank of England.
The country's leaders include prominent members of the financial world such as Janet Yellen, chair of the US Treasury, Jerome Powell, chairman of the Federal Reserve, and Gary Gensler, head of the SEC.
Stablecoins, which were not being monitored, ought to be regulated quickly, according to Yellen.
Gary Gensler spoke again on the need of protecting investors against fraud, echoing the perspective he had put out at the beginning of August.
Tether's interim development officer, Michael Hsu, revealed to authorities in July that the company was reviewing the firm's transaction records to verify whether each USDT token had a true equivalent of $1 in US dollars.
Tether has made efforts to support its reserves, but a thorough independent audit has not yet been done.
According to the Tether Transparency report, Tether has the leading position in terms of market supply, with 69.4 billion in circulation.
This week, USDT is worth over 70 billion, and this is very close to that.
The Tron network is holding a total of 36 billion TRX (51.8%), whereas the Ethereum network has 33.8 billion ETH (48.7%). The supply of USDT since the beginning of the year has risen by 232 percent.
Circle's stablecoin, USDC, has circulated a total of 29.3 billion, having grown sixfold in supply growth in the last year.
What do you think about stable coins?
