U.S. Treasury officials discuss stablecoin regulation with financial industry executives

U.S. Treasury officials met with financial industry executives this week to discuss potential stablecoin regulation. U.S. financial regulators said they are working to understand the risks and opportunities that cryptocurrencies bring to the traditional U.S. financial system and plan to release a series of related reports in the coming months.

This week’s meetings suggest the pace of work is gathering pace. U.S. officials reportedly asked at a meeting this week whether stablecoins would require direct regulation if they became popular.

They also discussed how regulators should try to reduce the risk of too many people converting stablecoins at the same time and whether major stablecoins should be backed by traditional assets. Information gathered at this week’s meeting could help the Treasury prepare a comprehensive report on stablecoins in the coming months.