Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

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

CryptocurrencySep 17, 2021 03:00PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
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

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

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email