The US Treasury is open to non-bank organizations issuing stablecoins
As Congress considers the possibility of non-banking organizations being able to issue stablecoins, Nellie Liang, Undersecretary of the Treasury for Internal Finance of the United States, says that agencies recommend issuers to be regulated as banks.
The president's Working Group on Financial Markets, which recommended last year that stablecoins belong to a regulated banking industry, did not want to be too tough on how crypto firms can reach this mark, Liang said on Monday at an event of the Financial Services Forum in Washington.
"There is some flexibility within this framework," she told reporters after speaking at the forum. "It should be open. It shouldn't have been limited to the current banks."
While the Treasury and regulatory bodies of the working group want all issuers of stablecoins to be regulated for security and reliability, like ordinary banks, she said that they should not have depository insurance and can be subsidiaries or affiliates of bank holding companies.
"What we wanted to do was include it in the banking system," she said. "The banking system is not necessarily deposit insurance."
According to Liang, issuers of tokens that are designed for stability by being tied to assets such as the dollar cannot be controlled only by the quality of their reserves; they need a new regulatory structure of Congress. Congressional negotiations involving Treasury are still in the early stages, although a potential bill in the House Financial Services Committee has leaned toward setting rules for both banks and non-banks, according to people familiar with the negotiations.
"These are more than money market funds," Liang said of stablecoin issuers, and therefore they need new rules that also apply to them as payment companies.
Earlier, Liang told the forum audience that digital assets have "the potential for truly fundamental payment reform."
https://coin-signal.com/cryptonews/the-us-treasury-is-open-to-non-bank-organizations-issuing-stablecoins/
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