Washington policymakers are alarmed at the rapidly expanding cryptocurrency market which exceeded a record US$2 trillion in April. As of Friday, the market cap of stablecoins stood at roughly US$125 billion, according to industry data site CoinMarketCap. It is unclear which financial regulations apply to these relatively new products.
In a sign those efforts are gathering pace, Treasury officials this week met with financial industry executives to discuss potential stablecoin regulation, the three sources said. Treasury officials also met earlier in the week with a group of banks and credit unions to discuss similar issues, another of the people said. Treasury officials appeared to be gathering information and did not share their thinking on how stablecoins should be regulated, this person added.
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