Treasury Official Urges Congress to Regulate Stablecoins

A top U.S. Department of the Treasury official said financial regulators are prepared to extend existing authorities to rein in stablecoins, although Treasury officials hope instead that Congress will move on key legislation to regulate the space. Nellie Liang, undersecretary for domestic finance at the Department of the Treasury and formerly the top financial stability official at the Federal Reserve, told Bloomberg on Friday that lawmakers must enact legislation to reduce risks around stablecoins – or digital assets pegged to fiat currency – including fraud, illicit finance and cybersecurity concerns. Congressional action, she said, would help protect the nation’s wider financial system.