Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

US Treasury officials mark Tether and other stablecoins as a significant concern

Published 09/17/2021, 02:50 PM
Updated 09/17/2021, 03:00 PM
US Treasury officials mark Tether and other stablecoins as a significant concern

US Treasury officials mark Tether and other stablecoins as a significant concern

The United States government might be imposing stricter restrictions on the crypto market as reports suggest that it will soon categorize stablecoins as a risk.

According to a Bloomberg report on Thursday, US Treasury officials have declared Tether and other stablecoins as a significant concern.

Stablecoins have been labeled as a threat not just by the US but also by several other countries and global financial entities. US and EU regulators have discussed the issue at length, with the Bank for International Settlements (BIS) stating that international cooperation was necessary for CBDCs.

In light of this, central bank digital currencies (CBDCs) are largely regarded as a countermeasure to stablecoins.

Authorities are reportedly gearing up to release a general regulatory framework in the coming weeks. The US is more likely to restrict very specific assets and use cases rather than impose draconian measures on the market. Officials have also drawn attention to lending platforms and the possible securities nature of some assets apart from stablecoins.

Ripple might be the biggest loser if this pulls through since its XRP token is used to facilitate cross-border transactions. It is currently embroiled in a lawsuit with the SEC and is firmly holding its ground.

Bloomberg noted that “widespread, fire-sale runs” of crypto assets could threaten financial stability. However, all of this is not guaranteed as the Financial Stability Oversight Council will be examining the potential threats of stablecoins.

Continue reading on BTC Peers

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.