US Treasury is Concerned About the Impact of Stablecoins on the Economy
The US Treasury Department is preparing a document that highlights the problems of redeeming stablecoins and their possible impact on the country’s financial stability.
According to Bloomberg, citing anonymous sources, US Treasury officials are preparing some policy recommendations for stablecoins.
Lawmakers are hoping to mitigate the “most pressing risks” associated with Tether (USDT) and other stablecoins. They also emphasized that a possible “mass sale” of crypto assets could harm financial stability in general.
Critics have long argued that the process of redeeming and maintaining Tether is highly desirable.
Treasury officials are most concerned about Tether, as the token’s relative market share has declined 25% since early 2021.
According to CoinGecko, at the beginning of the year, Tether made approximately 76% of stablecoin capitalization. But since then, USDT’s dominance over the sector has dropped by a quarter and accounts for 56.5% of the total stablecoin market capitalization today.
Recently, it turned out that the US Congress is preparing another bill on additional taxation of the cryptocurrency sphere.