The U.S. government is making strides toward establishing a comprehensive regulatory framework for stablecoins, a type of cryptocurrency pegged to traditional currencies like the U.S. dollar.
The Treasury Department, in collaboration with other financial regulators, has proposed new guidelines aimed at ensuring the stability and security of stablecoins while preventing illicit activities.
Key proposals include requiring stablecoin issuers to be insured depository institutions, similar to banks, and mandating regular audits of their reserves.
The proposed regulations are part of a broader effort to bring more clarity and oversight to the rapidly growing crypto market, particularly as stablecoins become increasingly popular for payments and remittances.
