United States President Joe Biden's pick for vice chair for supervision at the Federal Reserve, Michael Barr, a law professor and former advisory board member of Ripple Labs (XRP) called for U.S. lawmakers to regulate stablecoins in an effort to address “financial stability risks.”
Barr also said innovative technologies including cryptocurrencies had “some potential for upside in terms of economic benefit” but also “some significant risks” at the beginnings. Because, and we know it very well today, releasing a central bank digital currency is an issue that required “a lot more thought and study”.
-“Any investment involves risk — that’s how markets work,” said Warren. “But a market without rules is theft, and right now regular investors in stablecoins and crypto aren’t getting the baseline protections available in other financial markets.”-
Reuters reported Thursday, citing a copy of a communique it had obtained. (The officials from Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States) “G7” were meeting in Koenigswinter, Germany, following a foreign ministers’ meeting earlier in the week.
“[...] the G7 urges the FSB (Financial Stability Board)...to advance the swift development and implementation of consistent and comprehensive regulation" said Reuters paraphrasing what the finance ministers and central bankers from the Group of Seven industrialised nations said in the draft communique.
Bank of France Governor said that “Crypto assets could disrupt the international financial system if they are not regulated, overseen and interoperable in a consistent and appropriate manner across jurisdictions.” He also said that they “Will probably [...] discuss these issues among many others at the G7 meeting in Germany this week.”
DEFINITION INFO: The Financial Stability Board is an advisory body associated with the Bank of International Settlements. Its members represent institutions from 24 countries and several international organizations. It has no enforcement authority.
The collapse of the Terra algorithmic stablecoin has had repercussions in legislatures around the world. United States Treasury Secretary Janet Yellen reiterated her previous calls for a "consistent federal framework” on stablecoins in a Senate Banking Committee on May 10, saying the situation “simply illustrates that this is a rapidly growing product and that there are risks to financial stability and we need a framework that’s appropriate.”
The collapse of the Terra algorithmic stablecoin has had repercussions in legislatures around the world. United States Treasury Secretary Janet Yellen reiterated her previous calls for a "consistent federal framework” on stablecoins in a Senate Banking Committee on May 10, saying the situation “simply illustrates that this is a rapidly growing product and that there are risks to financial stability and we need a framework that’s appropriate.”