US Treasury Department Plans to Tighten Supervision of Stablecoins

The US Treasury Department is preparing a series of recommendations to tighten supervision of Tether and other stablecoins. As insiders say, the ministry has identified serious risks associated with the tokens.

The US Treasury recommendation states that holders of stablecoins should be able to freely convert tokens into assets backed by them. Legislators are also concerned about how stablecoin transactions are processed and settled, and how market conditions affect this process.

According to CoinMarketCap, the two largest stablecoins, USDT from Tether and USDC from Circle, are the 5th and 10th largest cryptocurrencies with market capitalization of $68 bln and $29 bln, respectively.

Image: Financial Times