The U.S. Treasury and other federal agencies are reportedly on the verge of cracking down on stablecoins through a review by the Financial Stability Oversight Council, Bloomberg sources confirmed.

Officials are reportedly particularly concerned about the fact that digital money is unregulated and could ultimately destroy rather than protect the financial system.

According to reports, a “consensus” has developed in support of a supervisory board review for the stablecoins. A firm decision on the issue is not expected until December.

The consensus of a supervisory board review will give the council the power to designate stablecoins as threats that warrant strict regulation and force various cryptocurrencies to either change their business models or shut down.

Another report also revealed that a Presidential Working Group on Financial Markets is reportedly more concerned about Tether, a cryptocurrency with tokens issued by Tether Limited.

For more information, read the original story in Engadget.

For more information, read the original story in Engadget.