Yellen Urges Swift Action on Stablecoin Regulation... Bitcoin Drops 2%

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] Janet Yellen, U.S. Treasury Secretary, emphasized the need to swiftly establish regulations for stablecoins.

According to MarketWatch on the 19th (local time), Secretary Yellen made this statement after convening a working group meeting on stablecoin response with federal agencies related to cryptocurrency.

In a statement released by the Treasury Department that day, "Secretary Yellen emphasized the need to act quickly to establish an appropriate regulatory framework in the United States." The statement also announced, "Recommendations will be released within a few months."

The Treasury Department said that during the meeting, participants discussed the rapid growth of stablecoins, their potential as a payment method, user protection, and concerns about national security threats.

Stablecoins are cryptocurrencies pegged to the value of the U.S. dollar. Recently, stablecoins have attracted the attention of regulators as their market capitalization exceeded $100 billion.

Jerome Powell, Chairman of the Federal Reserve (Fed), also appeared before Congress last week and emphasized the need for regulation, stating that even if a digital dollar is issued, the use of stablecoins could increase.

Attending the meeting were Secretary Yellen, Fed Chairman Jerome Powell, Gary Gensler, Chairman of the Securities and Exchange Commission, and Fed Vice Chairman Lael Brainard.

Meanwhile, cryptocurrencies collectively declined due to the impact of the U.S. government's stablecoin policy meeting.

According to CoinMarketCap, Bitcoin traded down 2.8% at $30,803, Ethereum fell 4.4% to $1,822, and Dogecoin dropped 5.1% to 17.45 cents.