The President’s Working Group on Financial Markets’ Report on Stablecoins: Six Things To Know

The President’s Working Group on Financial Markets’ Report on Stablecoins: Six Things To Know

November 5, 2021, Covington Alert

On Monday, November 1, 2021, the President’s Working Group on Financial Markets – comprised of the Chair of the Board of Governors of the Federal Reserve System, the Chair of the Securities and Exchange Commission, and the Acting Chair of the Commodity Futures Trading Commission – together with the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency (collectively, the “agencies”) – issued a much-anticipated report on stablecoins (the “Report”). The Report emphasizes the rapid pace at which stablecoins have developed, the risks that stablecoin arrangements pose and perceived gaps in regulatory authority over stablecoins, and calls for Congressional action to enact comprehensive legislation subjecting stablecoins to a prudential regulatory framework.