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Top Republicans Request Treasury Clarify How Stablecoins Are Classified


Top Republicans Request Treasury Clarify How Stablecoins Are Classified




Washington,
October 13, 2021 
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The top Republican on the House Financial Services Committee, Patrick McHenry (NC-10), along with the top Republican on the Subcommittee on Oversight and Investigations, Tom Emmer (MN-06), and the top Republican on the Task Force on Financial Technology, Warren Davidson (OH-08), sent a letter to Treasury Secretary Janet Yellen. The letter asks Secretary Yellen to clarify how Treasury categorizes stablecoins and the regulatory implications that flow from its classification.


Read the full letter here.


Read excerpts from the letter:


The Republican Members write: “There continues to be a great deal of interest and debate, both domestically and globally, regarding digital assets and in particular the use of stablecoins. Last week, the International Organization of Securities Commissions (IOSCO), which includes the Securities and Exchange Commission (SEC) as a member, and the Bank of International Settlements (BIS), issued a joint report articulating their view of stablecoins and their place within the financial system. We understand that the Department of Treasury (Treasury), in consultation with other regulators, will also issue a report in the coming weeks making recommendations regarding the future treatment of stablecoins. To that end, we are interested in understanding Treasury’s view of stablecoins.”

“We are interested in understanding how Treasury categorizes stablecoins and the regulatory implications that flow from its classification. First, does Treasury believe stablecoins are an alternative method of exchange within the broader payment system? If so, what criteria has the Treasury Department established to determine whether a particular stablecoin is systemically important, and what aspects of the payment system currently meet these criteria?


“If stablecoins are not an alternative method of exchange, what are the primary uses of stablecoins going forward? What criteria would Treasury establish to analyze the systemic importance of a particular stablecoin under an alternate classification (rather than primarily as a method of exchange within the payment system)?


“Finally, does Treasury share the view of Chair Gensler that additional authorities need to be provided by Congress for the SEC, banking regulators, or another governmental body to create a federal regulatory regime for stablecoins?”


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