Yellen "Discussion on Stablecoins Next Week"‥Altcoin Decline Deepens

[Image source=AP Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] Janet Yellen, U.S. Treasury Secretary, will meet with the financial market working group under President Joe Biden on the 19th (local time) to analyze the market impact of stablecoins and discuss potential regulations. Most altcoins, excluding Bitcoin, showed weakness on the day.

In a statement on the 16th (local time), Secretary Yellen said that at a meeting attended by the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC), they will evaluate the benefits of stablecoins and ways to reduce the risks stablecoins may pose to users, markets, and the financial system.

She added, "Given the rapid growth of digital assets, it is important for relevant agencies to cooperate on regulations in this area and the possibility of establishing a new responsible agency."

Stablecoins are virtual currencies pegged to the value of fiat currencies such as the U.S. dollar.

Jerome Powell, Chairman of the Federal Reserve (Fed), also mentioned the need for regulation during a House hearing on the 14th, stating that while a digital dollar would eliminate the need for cryptocurrencies, stablecoins are likely to continue being used.

According to CNBC, U.S. regulators are concerned about the transparency of stablecoin transactions and the reliance of market participants using these currencies on decentralized finance (DeFi).

Meanwhile, according to CoinMarketCap on the same day, Bitcoin traded at $31,815, up 0.19%, but most altcoins were declining.

Ethereum, the second largest by market capitalization, was trading down 1.29% at $1,902, and Dogecoin was down 7% at 17.4 cents.

This content was produced with the assistance of AI translation services.