July 20, 2021

On Monday, U.S. Treasury Secretary Janet Yellen told regulators that the government must establish a regulatory framework for stablecoins, a growing class of digital currencies, as soon as possible.

A group of regulators is planning to publish proposals over the next few months to address gaps around stablecoins according to the Treasury Department.

The group also discussed the rapid growth of stablecoins, which are essentially cryptocurrencies that try to peg their value to a conventional currency like the dollar.

Regulators discussed their potential uses and risks for users and the financial system.

Fed Chairman Jeremy Powell told lawmakers that stable currencies are growing very fast, but pointed out that they lack adequate regulation.

For more information, read the original story in Reuters.