Report on Stablecoins [pdf]
home.treasury.gov
Report on Stablecoins [pdf]
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Re: Report on Stablecoins [pdf]
#2TL;DR - Stablecoin issuers should operate under same regulatory structure as banks !
Re: Report on Stablecoins [pdf]
#3> To address risks to stablecoin users and guard against stablecoin runs, legislation should require stablecoin issuers to be insured depository institutions, which are subject to appropriate supervision and regulation, at the depository institution and the holding company level.
> To address concerns about payment system risk, in addition to the requirements for stablecoin issuers, legislation should require custodial wallet providers4 to be subject to appropriate federal oversight. Congress should also provide the federal supervisor of a stablecoin issuer with the authority to require any entity that performs activities that are critical to the functioning of the stablecoin arrangement to meet appropriate risk-management standards.
> To address additional concerns about systemic risk and concentration of economic power, legislation should require stablecoin issuers to comply with activities restrictions that limit affiliation with commercial entities. Supervisors should have authority to implement standards to promote interoperability among stablecoins. In addition, Congress may wish to consider other standards for custodial wallet providers, such as limits on affiliation with commercial entities or on use of users’ transaction data.
AKA StableCoin operators should be banks. (Stable Coins will be bank notes)?
Re: Report on Stablecoins [pdf]
#4[deleted]
Re: Report on Stablecoins [pdf]
#5> To address risks to stablecoin users and guard against stablecoin runs, legislation should require stablecoin issuers to be insured depository institutions, which are subject to appropriate supervision and regulation, at the depository institution and the holding company level. > To address concerns about payment system risk, in addition to the requirements for stablecoin issuers, legislation should require custodi…
I think this is a pretty decent set of recommendations considering the power stablecoin issuers have, personally.
> Stable Coins will be bank notes.
Exactly.
Re: Report on Stablecoins [pdf]
#6 > To address risks to stablecoin users and guard against stablecoin runs, legislation should require stablecoin issuers to be insured depository institutions, which are subject to appropriate supervision and regulation, at the depository institution and the holding company level.
How does this interact with the concept of algorithmic stablecoins? Not every stablecoin is simply backed by deposits.
Re: Report on Stablecoins [pdf]
#7This is a "regulated cybercurrency".
Re: Report on Stablecoins [pdf]
#8Value of crypto got too big, now the govt wants in.
Can't say we didn't see this coming.
This is good for crypto as it opens the doors for mainstream and institutional adoption at higher levels.
Plus, stable coins should be regulated and audited. Looking at you tether.
Re: Report on Stablecoins [pdf]
#9> To address risks to stablecoin users and guard against stablecoin runs, legislation should require stablecoin issuers to be insured depository institutions, which are subject to appropriate supervision and regulation, at the depository institution and the holding company level. > To address concerns about payment system risk, in addition to the requirements for stablecoin issuers, legislation should require custodi…
> Stable Coins will be bank notes
What do you call an institution that takes deposits and lends them out, such as by buying ""commercial paper"" that Tether repeatedly talks about? A bank. (Or possibly a money market fund)
Re: Report on Stablecoins [pdf]
#10> To address risks to stablecoin users and guard against stablecoin runs, legislation should require stablecoin issuers to be insured depository institutions, which are subject to appropriate supervision and regulation, at the depository institution and the holding company level. > To address concerns about payment system risk, in addition to the requirements for stablecoin issuers, legislation should require custodi…
We've seen that card played before.