Cryptocurrencies
Treasury to Flag Stablecoin Perils as U.S. Readies Clampdown
- Tether and its peers get scrutiny ahead of oversight talks
- Recommendations from Treasury officials may steer future rules
This article is for subscribers only.
Treasury officials have identified what they believe are the most urgent risks posed by Tether and other stablecoins as they ready recommendations for stricter oversight of cryptocurrencies.
Ensuring investors can reliably move money in and out of tokens is a top concern for officials crafting a policy framework set to be released in the coming weeks, according to people with knowledge of the matter who declined to be named because the work isn’t complete. They’re also worried that widespread, fire-sale runs on crypto assets could threaten financial stability and that certain stablecoins could scale up dangerously fast, the people said.