Markets Wired

WASHINGTON — Today, Secretary of the Treasury Janet L. Yellen announced plans to convene the President’s Working Group on Financial Markets (PWG), in addition to the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, to discuss interagency work on stablecoins. The group will meet Monday, July 19.
“Bringing together regulators will enable us to assess the potential benefits of stablecoins while mitigating risks they could pose to users, markets, or the financial system,” Secretary Yellen said. “In light of the rapid growth in digital assets, it is important for the agencies to collaborate on the regulation of this sector and the development of any recommendations for new authorities.”

This interagency work builds on the PWG’s December 2020 PWG “Statement on Key Regulatory and Supervisory Issues Relevant to Certain Stablecoins.” The PWG will examine the current regulation of stablecoins, identify risks, and develop recommendations for addressing those risks. The PWG expects to issue written recommendations in the coming months.

The PWG was established to enhance the integrity, efficiency, orderliness, and competitiveness of U.S. financial markets. In addition to the Secretary of the Treasury, the PWG members are the Chair of the Board of Governors of the Federal Reserve System, the Chair of the Securities and Exchange Commission, and the Acting Chairman of the Commodity Futures Trading Commission.

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