While stating that stablecoins may serve to improve efficiencies in payments and transfers, the President’s Working Group on Financial Markets (PWG) says responsible innovation must exist in line with existing law.
Treasury Deputy Secretary Justin Muzinich issued the following statement:
“The statement reflects a commitment to both promote the important benefits of innovation and to achieve critical objectives related to national security and financial stability. Regulators will continue to look closely at stablecoin arrangements, and look forward to future dialogue on these issues.”
In a release, PWG Members were said to emphasize that digital payments systems, including stablecoin arrangements, should be designed and operated in a responsible manner that effectively manages risk and maintains the stability of the U.S. domestic and international financial and monetary systems. In the United States, stablecoins and associated risks may require additional safeguards to ensure key policy goals such as financial stability, financial integrity, user protection, market integrity, operational resilience, well-functioning payments and trading markets, macroeconomic and monetary stability, and enhanced cross-border cooperation.
The statement points to the need to adhere to AML/CFT requirements. Additionally, certain stablecoins may need to apply with securities or commodities law.
While pursuing international collaboration, US authorities will continue to assess the evolving technological and market landscape and the U.S. regulatory framework for oversight of stablecoin arrangements to enable responsible innovation that protects end-users and to address potential risks to the financial system.
In addition to the Secretary of the Treasury, the PWG includes the Chairman of the Board of Governors of the Federal Reserve System, the Chairman of the Securities and Exchange Commission, and the Chairman of the Commodity Futures Trading Commission. The PWG also sought the views of the Acting Comptroller of the Currency in preparing this statement.