Representatives of US regulatory bodies discussed the risks associated with the use of digital currencies and stablecoins within the country.
A group of representatives of financial regulators in the United States invited federal and state officials to take stronger measures to mitigate the risks associated with the use of digital currencies and stablecoins at the local level.
Among the participating regulators were US Treasury Secretary Steven Mnuchin; the president of the Federal Reserve (EDF), Jerome Powell; the director of the Securities and Exchange Commission (SEC), Jay Clayton; and the director of the Commodity Futures Trading Commission (CFTC), Heath Tarbert.
The recommendations come as a result of the publication of a report yesterday, issued by the Supervisory Board for Financial Stability (FSOC), in which they invite federal and state regulators to continue examining the risks posed by cryptocurrencies and technologies DLT for the local financial system.
The initiatives and pressures on the part of the organisms come in place due to the announcement of crypto projects such as those of Facebook and Telegram, which analysts assure would have a quite large scope given the large base of users that they handle all over the world, thus allowing cross-border payments that undermine policies against money laundering and terrorist financing.
US regulators, digital currencies and stablecoins
The report published by the Supervisory Board for Financial Stability echoes some criticisms and concerns raised by the president of the Financial Services Committee of the US House of Representatives, Maxine Waters, as it ensures that the risks associated with the use of Existing digital assets (Bitcoin) and planned (Libra) could put the financial industry at risk, precisely because of connections with banking services, markets and intermediaries.
Deepening around the risks, the report states:
“There are risks for consumers, investors and associated companies, which imply possible losses or instability in market prices. There are also financial risks due to illegal acts; against national security; cybersecurity and privacy risks; as well as risks for the international monetary integrity and payment systems. “
Specifically, speaking about stablecoins, the report states:
“If a stable currency is widely adopted as a means of payment or store of value, the consequences on the stable system could affect the economy in general. Financial regulators should review existing and planned digital asset agreements, as well as their risks as appropriate. “
The recommendations come hand in hand with comments made by the president of the nation, Donald Trump, who warns of the risks posed by the use of digital currencies and stablecoins. Along with this, other executives press to consolidate the adoption of Blockchain, ensuring that the country could lag behind other nations in technology.