The President’s Working Group (PWG) on Financial Markets met today to discuss the topic of stablecoins.
In 2021, the PWG published a report on stablecoins requesting legislation stating:
“…in the absence of Congressional action, which is urgently needed to address the prudential risks inherent in payment stablecoins, the agencies recommend that the Financial Stability Oversight Council (Council) consider steps available to it to address the risks outlined in this report. Such steps may include designation of certain activities conducted within a stablecoin arrangement as, or as likely to become, systemically important payment, clearing, and settlement activities.”
Secretary of the Treasury Janet L. Yellen convened the PWG along with, the OCC, FDIC, and CFPB. Apparently, neither the CFTC nor SEC were in attendance.
According to a statement issued by Treasury, the PWG met to discuss stablecoin risks and how legislation could contribute to the existing regulatory framework.
The participants were said to have discussed developments since the Report on Stablecoins. The Secretary commended the steps that individual agencies have taken within the scope of their mandates and authorities. Secretary Yellen emphasized how recent events have underscored the urgent need to ensure that stablecoin arrangements are subject to a federal framework on a consistent and comprehensive basis.
Secretary Yellen reportedly “highlighted the need to continue to constructively engage in serious legislative efforts to promptly put in place a regulatory framework for stablecoins that would address current and future risks, such as those related to runs, safety and soundness, consumer protection, the payment system and the concentration of economic power, while complementing existing authorities with respect to market integrity, investor protection, and illicit finance.”