Three US senators \u2014 Sherrod Brown, Pat Toomey and Cynthia Lummis \u2014 published responses to the Treasury\u2019s report on the risks associated with stablecoins. Their statements could form the basis for upcoming debates.<\/p>\n
In previously published document<\/a> the report notes threats to investors and market integrity from \u201cstablecoins,\u201d as well as stringent regulatory restrictions.<\/p>\n Republicans Toomey and Lummis sit on the Senate Banking Committee chaired by Brown (the Democratic Party). In Brown\u2019s view, the PWG report \u201chighlights the risks that the rapid growth of stablecoins poses for families and the economy.\u201d<\/p>\n \u201cWe must work so that any new financial technologies fall under the scope of all laws and regulations protecting investors, consumers and markets, and that they compete on a level playing field with traditional financial institutions,\u201d<\/em> is said<\/em><\/a> in the statement.<\/em><\/p>\n<\/blockquote>\n Brown expressed willingness to work with Treasury Secretary Janet Yellen and regulators \u201cto foster responsible innovation in the financial system.\u201d<\/p>\n Lummis backed some PWG recommendations but called the push to treat stablecoin issuers as depository institutions with federal deposit insurance erroneous.<\/p>\n \u201cThere are other, safer ways to achieve the same goals. For example, we could require that 100% of stablecoin reserves be kept off the balance sheet, or held at the Federal Reserve Bank [\u2026]. I am concerned that the recommendation will benefit only large banks and stifle innovation,\u201d<\/em><\/p>\n<\/blockquote>\n My thoughts on the President\u2019s Working Group Report on Stablecoins \u27a1\ufe0f\u27a1\ufe0f\u27a1\ufe0f https:\/\/t.co\/zSxM7w8Diq<\/a><\/p>\n \u2014 Senator Cynthia Lummis (@SenLummis) November 1, 2021<\/a><\/p><\/blockquote>\n \n
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