Treasury looks at run risks in stablecoin, pushes for new rule proposals

 Treasury looks at run risks in stablecoin, pushes for new rule proposals

Treasury Secretary Janet Yellen departs from a meeting in the U.S. Capitol Building on August 03, 2021 in Washington, DC. (Photo by Anna Moneymaker/Getty Images)

Stablecoins, a fast-growing part of the crypto market, could be facing rules akin to those that govern money-market funds, as well as new banking rules, as U.S. regulatory agencies step up scrutiny of these digital currencies.

The Treasury Department is working with other financial agencies under the President’s Working Group on Financial Markets to present a report within the next month with recommendations for a possible regulatory framework for stablecoin. From there, officials will know how much authority they have at the agencies and whether they need to seek further authority from Congress to regulate stablecoins.

Stablecoins are cryptocurrencies whose values are tied to fiat currencies like the U.S. dollar, precious metals, or short-term securities as a way to…

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