The President’s Working Group on Financial Markets (PWG) is expected to soon publish its anticipated report on the burgeoning stablecoin market.
In addition to the US Secretary of the Treasury, the PWG includes the Chair 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.
Stablecoins are digital assets that are tied to another, less volatile asset – typically a fiat currency like the dollar or euro. Today, Tether (USDT) is the most popular stablecoin that is dollar-based, having a market cap of over $69 billion. Traders and investors use stablecoins to onboard or park funds between trades. Policymakers have grown concerned about the unregulated nature of the market and the potential impact these assets could have on global markets.
According to a report by Bloomberg, the PWG may ask Congress to create legislation to initiate a new type of bank charter for stablecoin issuers. The stablecoins themselves would be regulated by the Commodity Futures Trading Commission.
The Chairman of the SEC, Gary Gensler, has repeatedly called for greater stablecoin regulation since taking the helm of the Commission. The report says that Gensler may win over PWG members and give the SEC greater oversight in regulating crypto. The report is predicted to be published this week. Details to follow.