Regulators have long been circling cryptocurrencies. Now they have a new target: stablecoins.
A Monday report from the President's Working Group on Financial Markets, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency urged Congress to slap bank-like rules on the assets. The selling point of stablecoins is in the name: their value is meant to fluctuate less than other digital currencies because they are pegged to a real-world asset — in many cases, the US dollar.
Read More"The rapid growth of stablecoins as an innovative and unregulated means to engage in speculative digital asset trading, lending and borrowing is in equal measures awe-inspiring and unsettling," said acting Comptroller of the Currency Michael J. Hsu in a statement.The regulatory recommendations include requiring stablecoin issuers to be FDIC-insured in case of losses, just like banks.
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