Amid the huge growth of the stablecoin market, the U.S. Treasury Department has reportedly discussed potential regulation for private stablecoins.
The Treasury Department held several meetings last week to explore the risks of stablecoins to users, markets or the financial system, as well as to learn about their benefits and consider potential regulation, Reuters reported Sept. 10.
"The Treasury Department is meeting with a broad range of stakeholders, including consumer advocates, members of Congress and market participants," - Treasury spokesman John Rizzo said.
Citing three anonymous sources familiar with the matter, the report notes that one of the Treasury meetings took place last Friday, with officials asking the crypto community whether stablecoins would require direct oversight if this type of cryptocurrency became widely adopted. They also reportedly discussed how regulators should mitigate risk if too many people decide to withdraw their stablecoins at one time, and whether major stablecoins should be backed by traditional assets.
Treasury officials also met earlier with a group of banks and cooperative credit unions to discuss potential regulation of stablecoin. A Reuters source said officials were gathering information and did not share their thoughts on how stablecoins should be regulated.