US Treasury officials mark Tether and other stablecoins as a significant concern By BTC Peers
The United States government might be imposing stricter restrictions on the crypto market as reports suggest that it will soon categorize stablecoins as a risk.
Tether and the other stablecoins have been declared a major concern by US Treasury officials, according to Bloomberg reports.
Not only have the US and several countries flagged stablecoins as a risk, but so has many other financial organizations around the world. The issue has been discussed extensively by the US and EU regulators, with the Bank for International Settlements declaring that CBDCs require international cooperation.
The central bank digital currencies of the Central Bank (CBDCs), are widely regarded as a measure against stabilitycoins.
In the next few weeks, officials are expected to publish a broad regulatory framework. It is likely that the US will restrict specific assets and only use certain cases, rather than place draconian restrictions on the market. Officials also referred to the possibility of securities being used in some assets, as well as lending platforms.
It could be the largest loser, as its XRP token facilitates cross-border transaction. It’s currently involved in a legal battle with the SEC, but is holding firm to its position.
Bloomberg noted that “widespread, fire-sale runs” of crypto assets could threaten financial stability. All of this, however, isn’t guaranteed. The Financial Stability Oversight Council (FSOC) will examine the possible threats from stablecoins.
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