Stablecoin Plan Of The Biden Administration Has Emerged

The stablecoin plan of the Biden administration has emerged. It was stated that the arrangement was a bank-like arrangement.

In the US, it was stated that the Biden administration is considering bringing similar regulations to the banking sector for cryptocurrency companies that issue stablecoins. According to the news of the Wall Street Journal, citing anonymous sources familiar with the matter, the regulations considered include encouraging companies to register as banks. It is said that with this regulation, the administration aims to alleviate concerns that stablecoins indexed to national currencies such as the US dollar may cause financial panic. It is stated that the government has determined two ways for such an arrangement. Accordingly, the first way is an arrangement through Congress, and the other through the Financial Stability Oversight Council (FSOC). The second option is not the government's preferred approach, according to sources. On the other hand, it was stated in the news that the stablecoin report prepared by the group led by the US Treasury Department is expected to be published in late October. Currently, the most widely used stablecoin in the cryptocurrency market is USDT. Behind USDT is Tether, which has had some problems with the USA in the past. Another major stablecoin is USDC. USDC is managed by the Centre, a consortium of Circle and Coinbase. In addition, Senator Cynthia Lummis, who is known for her support to the cryptocurrency industry, said in a statement yesterday that stablecoins should be backed by 100% cash assets and also regularly audited.