U.S. Government Releases Stablecoin Report

• The U.S. has released an official report outlining their stance towards the stablecoin market. The President’s Working Group on Financial Markets, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency have all contributed to the report’s findings.

• U.S. regulators have outlined their argument that stablecoin issuers must be subject to the same federal oversight that banks operate under. Regulators aim to treat stablecoin issuers like any other federally regulated insured depository institution, where only institutions licensed to operate under these federal guidelines would be allowed to issue stablecoins.

• Part this push is to separate the blurred lines between financial and technology sectors in the crypto space, where custodial wallet providers will be regulated by federal financial agencies. This can be interpreted as a direct stance taken by the U.S. towards Facebook and its Diem stablecoin project.

• Treasury Under Secretary for Domestic Finance Nellie Liang stated that “without safeguards, I think the industry and regulators alike think we might miss out on some potential benefits of financial innovation. I think there’s a common appreciation of needing a framework that isn’t too onerous, provides protections and can keep the innovation moving forward.”