The long-awaited Stablecoin report has been released. The President’s Financial Markets Working Group (PWG), chaired by US Treasury Secretary Janet Yellen, has completed its research on the risks posed by stablecoins for the financial system and published its report.
The report stated that the lack of legislation on stablecoins raises significant concerns for investor protection and market integrity.
The report, which voiced concerns over the reserves of stablecoins, called on Congress to pass a law limiting the issuance of stablecoins.
“To address the risks to stablecoin users, stablecoin issuers must be subject to certain scrutiny and regulation and have insured custodians in the background.”
In the report, the risks posed by stablecoins in general and the laws that should be created against these risks are mentioned.
Although these statements are the ones we hear frequently from regulators, we see that there is a delay in the work of the law.
The report also highlighted the need for the SEC and CFTC to participate in stablecoin market regulations.
A list of companies operating as stablecoin market participants has been released. At this point, it is noteworthy that Visa and Mastercard, which are indirectly related to the crypto sector, are also involved.
