The US National Treasury has been warning about its use for some time, but now it has gone further and clarified its regulatory intentions regarding stablecoins.
This body has recently issued a document recommending “this Congress moves quickly to enact legislation To ensure that stablecoins are subject to a federal framework on a consistent and comprehensive basis.”
Specifically, it indicates that “legislation Should provide for supervision on a uniform basis, precautionary rules And perhaps the right components of the federal safety net can be accessed.”
The document also maintains that “Legislation should limit the issuance of stablecoins and related reserve asset recovery and maintenance activities to entities that are secured depository institutions.”
This will only allow financial entities, which are authorized to protect funds and other assets, with the ability to issue digital stablecoins. This excludes stablecoins like DAI, which are decentralized or algorithmic stablecoins.
“Legislation should ensure that supervisors have the authority to implement standards that promote interoperability between stablecoins.”, as the text also indicates, which would practically force trading platforms to Accept various stablecoins at random under legal authorization.