Yesterday, US Treasury Secretary Janet Yellen announced that a meeting will be held tomorrow, July 19, to discuss stablecoins, their benefits and potential risks.

Specifically, the high-level meeting will be attended by the President’s Working Group on Financial Markets, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation to discuss digital currencies pegged to fiat currency in detail.

The meeting is particularly important for the cryptocurrency industry, as the crypto community is expected to monitor the outcome of this discussion.

hung Minister Yellen about the meeting said:

Bringing the regulators together will enable us to assess the potential benefits of stablecoins while mitigating the risks they can pose to users, markets or the financial system.

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In light of the rapid growth of cryptocurrencies, it is important for agencies to cooperate in regulating this sector and to develop any recommendations for new authorities.

It should be noted that by the end of 2020, the President’s Working Group on Financial Markets has released a detailed report on stablecoins.

The Treasury says this report will be the basis for the next meeting on Monday.

Currently, stablecoin regulations are not yet clear at the federal level in the US, instead, stablecoin operators are forced to deal and operate according to individual state charters and licenses.

Stable Cryptocurrency Regulations Worldwide:

While stablecoins will be the talk of the town in the US on Monday, countries around the world are taking their own time to study stablecoins and draft appropriate regulations for them.

In June, the Bank of England reported that stablecoin payments must receive the same regulations as bank payments if they are widely adopted.

Similarly, on July 8, the Reserve Bank of New Zealand announced that it would hold public consultations regarding stablecoins, central bank digital currencies, and other emerging technologies.

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On July 16, it was reported that financial regulators in Japan are considering stepping up efforts to regulate cryptocurrencies, including stablecoins, as the industry continues to swell at an increasing rate evidenced by the volume of trading handled by cryptocurrency exchanges.

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