Digital Currency: The Future is Now

Policy World Playing Catch-Up to Reality

Digital currency. Cryptocurrency. Stablecoins. No matter the name, these relatively new forms of conducting business are gaining tons of attention. Not least because of their growing popularity and rising stock prices. Recently, the President’s Working Group (PWG) completed a study of so-called stablecoins and recommendations are being made about ways to regulate them.

“Stablecoins that are well-designed and subject to appropriate oversight have the potential to support beneficial payments options. But the absence of appropriate oversight presents risks to users and the broader system,” said Secretary of the Treasury Janet L. Yellen. “Current oversight is inconsistent and fragmented, with some stablecoins effectively falling outside the regulatory perimeter. Treasury and the agencies involved in this report look forward to working with Members of Congress from both parties on this issue. While Congress considers action, regulators will continue to operate within their mandates to address the risks of these assets.”

The report issued by the PWG follows an announcement by the Consumer Financial Protection Bureau (CFPB) on a comprehensive review of “Big Tech” companies and payment processing systems operated by them.

CFPB Director Rohit Chopra had this warning as regulators examine ways to approach the stablecoin market: