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The payments landscape for community banks is changing rapidly as traditional payments converge with new instant payment systems and emerging cryptocurrencies. It is critical for Community Banks to maintain awareness of developments in the payments space to assess new opportunities, mitigate risks, and ensure that their payment strategy aligns with overall business plans.
Nov. 02, 2021
The President’s Working Group on Financial Markets issued a long-awaited report spotlighting regulatory gaps in overseeing stablecoins and recommending legislation to implement a federal regulatory framework.
ICBA Position: In a news release, ICBA said it supports the group’s efforts to ensure a consistent federal regulatory framework for stablecoins that balances their benefits and risks. ICBA engaged the PWG as it developed the report, which incorporates ICBA concerns about the risks of rapid stablecoin growth.
Quote: “As ICBA told the working group and has consistently advocated, stablecoins require appropriate federal oversight that closes regulatory gaps regardless of how these digital assets are classified by policymakers,” ICBA President and CEO Rebeca Romero Rainey said.
More: Among its recommendations, the PWG report encourages Congress to enact legislation to:
Require stablecoin issuers to be insured depository institutions.
Require custodial wallet providers to be subject to appropriate federal oversight.
Authorize the federal stablecoin supervisor to require risk-management standards.
Restrict stablecoin issuers from affiliating with commercial entities.