Financial Stability Oversight Council Will Meet To Discuss Regulatory Gaps

Financial Stability Oversight Council Advocated Stablecoins

A larger framework from the Biden administration that constitutes the first attempt to coordinate federal agencies' perspectives on digital currencies is still incomplete. However, the study from the group of American regulators is the final item to be released. Last November, the Treasury-led President's Working Group on Financial Markets advocated giving the FSOC control over stablecoins if Congress failed to enact legislation governing them.

Treasury Suggests Stepping Up Crypto Enforcement

The U.S. Treasury Department wants financial market authorities to aggressively pursue investigations and enforcement actions against digital asset projects that aren't abiding by the law, which is consistent with regulators' stance.

However, as part of a larger initiative to develop a unified government approach to digital assets, one of the papers released on Friday also suggests that regulators publish extra guidelines and guidance for projects that seek to adhere to the law. This might cause financial watchdogs to alter their strategy somewhat to stress the carrot of more explicit regulations in addition to the stick of taking legal action against corporations that violate them.

During a news conference on Thursday to preview the reports, which President Joe Biden ordered in March, a senior official from Treasury stated that the department wanted agencies to "double down" on current regulations. Before answering questions, senior administration representatives asked to speak anonymously.