Nellie Liang, a U.S. Treasury Department official, is set to stress the importance of regulatory oversight of stablecoin issuers during her speech to Congress.
Speaking to the Financial Services Committee, Liang, one of the directors of the ministry’s finance department, plans to call for tighter scrutiny of institutions that mediate cryptocurrency transactions and institutions that issue a private stablecoin.
According to his draft speech, released Monday, Liang said institutions that broker such transactions, including traditional banks and investment firms, can be legally overseen. need more work is thinking.
In Liang’s scheduled speech, “By applying to both traditional and digital intermediaries; It is critical to prepare a legal framework that will prevent risk factors for businesses, consumers, investors and the financial system in general.” statement was included.
Liang is also involved in the cryptocurrency market. to leveraged transactions plans to draw attention to the large-scale risks this may pose. Liang, in his draft speech, “As we saw in the 2007-2008 crisis; leveraged transactions to consolidate and accelerate financial instability can play a key role” says.
In terms of the overall financial system stablecoins too Believing that they pose a risk, Liang said that a legal framework for them urgently stating that it should be prepared and the current stablecoin regulations not comprehensive and consistent enough stressed.