US Congress did not support PWG’s proposal to regulate stablecoins

The congressional representatives believe that issuers should not be seen as banking institutions

10.02.2022 - 08:00

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What’s new? The House Committee on Financial Services of the US Congress believes that the proposal from the President’s Financial Markets Working Group (PWG) is inappropriate for regulating the stablecoin market. According to the congressional representatives, stablecoin issuers should not be put on a par with banks.

The full version of the PWG report

What arguments did members of Congress make? According to Republican Patrick McHenry, the PWG proposal to equate stablecoin issuers with depository institutions will not reduce risks in the industry. On the contrary, it can lead to over-regulation. Instead, the congressional proposal is to limit the disclosure requirements on collateral, as well as to conduct regular audits of stablecoin issuers’ activities.

The US regulator will make a final decision on this situation during 2022 after consultation with all stakeholders and representatives of the cryptocurrency community.

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