US Treasury Officials, Financial Industry Executives Met to Discuss Stablecoins: Report

Officials from the U.S. Department of the Treasury held meetings with financial services executives this week to discuss the risks and advantages of stablecoins, according to a Reuters article on Friday.

• The report, which cited three unnamed sources, said the meetings with banks and other organizations, including a Friday meeting, considered potential regulation and related topics
• According to two of the sources, the Treasury officials inquired if stablecoins would need direct oversight if demand for them increased markedly.
• The officials also inquired how regulators might limit the risk potentially occurring if too many people tried to cash in their stablecoins at roughly the same time, and whether the most significant stablecoins should have traditional assets’ backing.
• In addition, the meetings covered how stablecoins could be structured and used and whether there is sufficient regulatory structure in place to address security concerns.
• The officials seemed to be collecting information and did not offer opinions on potential regulatory moves, according to one individual cited in the article.
• In a statement cited by Reuters, Treasury spokesman John Rizzo said that in examining “potential benefits and risks of stablecoins for users, markets, or the financial system,” the department was “meeting with a broad range of stakeholders.”