The officials from the Treasury Department of the United States of America have now targeted stablecoins, seeing it as the most pressing matter, which is in dire need of strict regulations. The government, as well as the current situation of the crypto asset space, demands a very pragmatic solution. This is why the policymakers of the U.S Treasury are under a lot of pressure and are making the regulation of stablecoins their first priority.
Bloomberg has stated in a recent report that the U.S Treasury officials are in the process of creating a framework for their policies against stablecoins, and this framework is speculated to be introduced to the public in the upcoming weeks. Their foremost concern right now is to ensure that the traders and investors can easily and reliably move their assets through the crypto asset space while being secure from any instances of scam.
Some anonymous insiders are a bit worried that this could trigger a fire-sale run for crypto assets, and it would massively damage the financial stability. Also, some stablecoins may scale up very quickly.
Regulation of Stablecoins
The Oversight Council for Financial Stability is also planning to present a formal review just to analyze if stablecoins are a prospective economic threat. The U.S Treasury officials are currently taking a close look at how the transactions of stablecoins are settled and processed and if the conditions of the market affect them in any way.
The global head of policy of a crypto fund, which is being managed by Andreessen Horowitz, a venture capital giant, Tomicah Tillemann, stated that it is very significant and necessary to make a regulatory structure for the digital assets we are witnessing right now. This is a very big step and a positive one, he added.
Tether has held its position as the market leader, maintaining a supply of more than 69.4 billion, as stated by the Transparency Report by Tether. This amount of supply is very close to the highest ever supply of USDT at 70 billion, which was recorded a few days before. 51.8% or 36 billion of the total supply is present on the Tron network; also, 48.7% or 33.8 billion is currently running on ETH. The supply of USDT has surged by 232% from the start of this year alone. Meanwhile, USDC has a supply of 29.3 billion currently.