A trio of U.S. House Republican leaders are asking U.S. Treasury Secretary Janet Yellen to clarify how the Treasury categorizes stablecoins, which are a type of digital currency, and the regulatory implications of that classification.
“There continues to be a great deal of interest and debate, both domestically and globally, regarding digital assets and in particular the use of stablecoins. Last week, the International Organization of Securities Commissions (IOSCO), which includes the Securities and Exchange Commission (SEC) as a member, and the Bank of International Settlements (BIS), issued a joint report articulating their view of stablecoins and their place within the financial system. We understand that the Department of Treasury (Treasury), in consultation with other regulators, will also issue a report in the coming weeks making recommendations regarding the future treatment of stablecoins. To that end, we are interested in understanding Treasury’s view of stablecoins,” the GOP lawmakers wrote in a letter to Yellen.
The letter was signed by Rep. Patrick McHenry (R-NC), the top Republican on the House Financial Services Committee, Rep. Tom Emmer (R-MN), the top Republican on the Subcommittee on Oversight and Investigations, and Rep. Warren Davidson (R-OH), the top Republican on the Task Force on Financial Technology.
“We are interested in understanding how Treasury categorizes stablecoins and the regulatory implications that flow from its classification. First, does Treasury believe stablecoins are an alternative method of exchange within the broader payment system? If so, what criteria has the Treasury Department established to determine whether a particular stablecoin is systemically important, and what aspects of the payment system currently meet these criteria?” they asked Yellen.
If they are not an alternative method of exchange, the lawmakers wanted to know the primary uses of stablecoins.
“What criteria would Treasury establish to analyze the systemic importance of a particular stablecoin under an alternate classification (rather than primarily as a method of exchange within the payment system)?” they asked. “Finally, does Treasury share the view of Chair Gensler that additional authorities need to be provided by Congress for the SEC, banking regulators, or another governmental body to create a federal regulatory regime for stablecoins?”