The President’s Working Group on Financial Markets, or PWG, has released a report suggesting that stablecoin issuers in the United States should be subject to “appropriate federal oversight” akin to that of banks.
A Nov. 1 U.S. Treasury report from the group with the Office of the Comptroller of the Currency and Federal Deposit Insurance Corporation said Congress should “act promptly to ensure that payment stablecoins are subject to appropriate federal prudential oversight on a consistent and comprehensive basis.” The government agencies said stablecoin issuers should be held to the same standards as insured depository institutions including state and federally chartered banks and savings associations as they protect customers’ deposits and limit “any potential negative systemic impacts in the event of bank failure.”